Section 8 Fair Market Rent (FMR) for ZIP 90033 - 2027

Investment Score for ZIP 90033

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	$1,720
1 Bedroom	$1,920
2 Bedrooms	$2,370
3 Bedrooms	$3,010
4 Bedrooms	$3,360
5 Bedrooms	$3,898
6 Bedrooms	$4,366
7 Bedrooms	$4,715
8 Bedrooms	$4,951

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,920	$496,495	0.39%	F
2BR	$2,370	$574,537	0.41%	F
3BR	$3,010	$659,771	0.46%	F
4BR	$3,360	$717,856	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90033 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90033 is set by HUD for 2026 and ranges from $1450 for a zero-bedroom unit to $2920 for a four-bedroom unit. The FMR for a two-bedroom unit is $2070, which represents 41.6% of the median household income of $59,652. This indicates that the FMR is significantly lower than the actual market rent for two-bedroom units, which Zillow reports at $590,852. The price-to-FMR ratio for a two-bedroom unit is 23.8x, meaning that the actual market rent is over 23 times higher than the FMR. This suggests that tenants with Section 8 vouchers would find it extremely difficult to afford housing in this area, given the substantial gap between FMR and actual market rents. #### Affordability & Renter Profile ZIP code 90033 has a high occupancy rate of 94.7%, indicating that there is little vacancy in the rental market. With 82.4% of the population being renters, the demand for rental properties is strong. However, the median household income of $59,652 is relatively low compared to the high cost of living in Los Angeles, especially when considering the high market rents. Given that 41.6% of the median income goes towards the FMR for a two-bedroom unit, it is clear that the majority of residents are likely to be struggling with housing affordability. This tight market makes it challenging for low-income renters to secure affordable housing, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 90033 presents a mixed picture. While the overall market rents are very high, the FMRs are set much lower. For instance, the FMR for a two-bedroom unit is $2070, whereas the Zillow median for a two-bedroom property is $590,852. This means that even if an investor were to rent out a property at the FMR, they would still face significant challenges in covering the mortgage payments and other expenses associated with owning a property valued at $590,852. Given the high price-to-FMR ratio, the cash flow potential for investors focusing on Section 8 properties is likely negative unless they can find properties significantly below the market value. The investment grade for this ZIP code would be considered poor for Section 8-focused investors due to the high market values and the limited ability of voucher holders to cover these costs. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that are closer to the FMR levels rather than market rates. For example, a zero-bedroom unit at $1450 or a one-bedroom unit at $1630 might be more feasible for Section 8 tenants. This could involve purchasing older, smaller, or less desirable properties that are priced lower. 2. **Consider Subsidies and Programs**: Given the high cost of living and the low FMRs, investors might want to explore additional government subsidies and programs that can help bridge the gap between FMR and market rents. These could include Low-Income Housing Tax Credits (LIHTC), Community Development Block Grants (CDBG), or other local initiatives aimed at making housing more affordable. #### Bottom Line For Section 8-focused investors, the ZIP code 90033 is not recommended for buying due to the extremely high market rents and the low FMRs. The high price-to-FMR ratio of 23.8x for a two-bedroom unit indicates that cash flow will likely be negative, and the tight market with a high occupancy rate suggests that finding suitable properties at reasonable prices will be challenging. Therefore, the recommendation is to **skip** this ZIP code for now and consider other areas where the FMR is closer to the market rent, providing better opportunities for positive cash flow and more affordable housing options for Section 8 tenants.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.