Section 8 Fair Market Rent (FMR) for ZIP 90032 - 2027

Investment Score for ZIP 90032

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,680
1 Bedroom	$1,870
2 Bedrooms	$2,310
3 Bedrooms	$2,930
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,870	$575,608	0.32%	F
2BR	$2,310	$722,269	0.32%	F
3BR	$2,930	$841,984	0.35%	F
4BR	$3,280	$937,094	0.35%	F
5BR	$3,805	$1,034,944	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90032 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90032 in 2026 is set at $2,070 for a two-bedroom apartment. However, the Zillow median price for a two-bedroom home in this area is $725,687, which translates to a price-to-FMR ratio of 29.2x. This means that the actual rent for a two-bedroom unit is significantly higher than the FMR. For instance, if we assume a conservative annual rental yield of 5%, the monthly rent would be approximately $3,025, which is well above the FMR. This discrepancy places significant constraints on voucher holders. The maximum allowable rent under the Section 8 program is typically capped at the FMR, meaning that tenants with vouchers would struggle to find suitable housing in this ZIP code. Even for units that do fall within the FMR range, competition would likely be intense due to the high demand and limited supply. #### Affordability & Renter Profile ZIP code 90032 has a population of 43,117, with 48.3% of residents being renters. The median household income in this area is $82,292, indicating a relatively affluent demographic. Despite this, the occupancy rate stands at 95.2%, suggesting a tight rental market where most available units are quickly occupied. Given that 30.2% of the median income is required to afford a two-bedroom apartment at the FMR, it becomes clear that the majority of residents in this ZIP code would find it challenging to secure affordable housing through traditional means. The high rent-to-income ratio and the competitive nature of the market imply that there is a significant gap between what renters can afford and what is available. This makes it particularly difficult for low-income families who rely on Section 8 vouchers to find suitable accommodation. #### Investor Angle From an investor's perspective, the ZIP code 90032 presents a mixed picture. While the Zillow median price for a two-bedroom home is quite high at $725,687, the potential rental income at the FMR level is only $2,070 per month. To determine whether this ZIP code is cash-flow positive, we need to consider the typical operating expenses, including property taxes, insurance, maintenance, and other costs. Assuming a total monthly expense of around $1,000 (which includes property taxes, insurance, and maintenance), the net cash flow would be $1,070 per month. However, given the high purchase price, the initial capital outlay would be substantial. A conservative estimate of a 20% down payment would require an investor to put down $145,137. With a mortgage rate of around 5%, the monthly mortgage payment would be approximately $3,470, leading to a negative cash flow of about $1,400 per month. Therefore, the ZIP code 90032 is not cash-flow positive at the FMR level. In terms of investment grade, the high price-to-FMR ratio and the limited availability of units that fall within the FMR suggest that this ZIP code is not ideal for investors focusing solely on Section 8 properties. The high purchase price and low FMR relative to market rents indicate that the returns on investment would be lower compared to other areas where the FMR is closer to market rents. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high price-to-FMR ratio, investors should focus on securing units that are priced below the FMR. For example, a one-bedroom apartment at $1,630 would be more attractive since it falls within the FMR range and is still affordable for voucher holders. This would also provide some margin for covering operational costs and generating positive cash flow. 2. **Consider Multi-Family Properties**: Single-family homes are likely to be priced much higher than the FMR. Instead, investors might want to look into multi-family properties where the average rent per unit could be closer to the FMR. For instance, a three-bedroom apartment at $2,650 might be more feasible, especially if the property has multiple units, allowing for better financial management and potentially positive cash flow. 3. **Evaluate Long-Term Potential**: While the current market conditions make it challenging for cash-flow positive investments, investors might consider the long-term potential of this ZIP code. If they can secure properties at a discount or through creative financing methods, they might benefit from future appreciation in property values, even if the immediate returns are not favorable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90032 is to **Skip**. The high price-to-FMR ratio and the limited number of units that fall within the FMR range make it difficult to achieve positive cash flow. Additionally, the tight rental market and high occupancy rates suggest that finding suitable properties for Section 8 tenants will be challenging. Investors looking for more favorable conditions should consider other ZIP codes where the FMR is closer to market rents and where the demand for affordable housing is more aligned with the supply.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.