Section 8 Fair Market Rent (FMR) for ZIP 90034 - 2027

Investment Score for ZIP 90034

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	$2,690
1 Bedroom	$3,010
2 Bedrooms	$3,710
3 Bedrooms	$4,710
4 Bedrooms	$5,270
5 Bedrooms	$6,113
6 Bedrooms	$6,847
7 Bedrooms	$7,395
8 Bedrooms	$7,765

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	$3,010	$506,827	0.59%	F
2BR	$3,710	$971,444	0.38%	F
3BR	$4,710	$1,555,061	0.3%	F
4BR	$5,270	$2,108,112	0.25%	F
5BR	$6,113	$2,917,452	0.21%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90034 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90034 is set by HUD for 2026 as follows: - 0BR: $2300 - 1BR: $2570 - 2BR: $3210 (which is 36.4% of the median household income) - 3BR: $4070 - 4BR: $4530 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, comparing these to actual market rents reveals significant constraints. For instance, the Zillow median price for a 2BR unit in this ZIP code is $999,363, which translates to a monthly mortgage payment of approximately $4,500 assuming a 30-year fixed-rate mortgage at 4.5%. This means that even if a property owner were to rent out their 2BR unit at the FMR rate of $3210, they would still be facing a substantial shortfall in covering mortgage payments, utilities, and maintenance costs. The high price-to-FMR ratio of 25.9x indicates that the actual market rents far exceed what is covered by the vouchers, making it challenging for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 90034 has a population of 57,075, with 79.6% of residents being renters. This high percentage of renters suggests a strong demand for rental properties in the area. The occupancy rate stands at 90.3%, indicating that the majority of units are occupied, leaving little room for vacancy. Given the median household income of $105,701, the affordability of housing is a critical issue. The FMR for a 2BR unit is only 36.4% of the median income, which implies that most residents, especially those relying on Section 8 vouchers, face significant financial pressure to secure housing. The tight market conditions mean that there is likely a shortage of affordable rental units, leading to competition among tenants and potentially higher rents. #### Investor Angle From an investor perspective, renting out a 2BR unit at the FMR rate of $3210 would not be financially viable given the high mortgage costs. Assuming a mortgage payment of around $4,500 per month, an investor would need to cover the remaining $1,290 per month from other sources such as subsidies or additional income streams. This makes the ZIP code less attractive for traditional rental investments unless the investor can leverage other forms of support. The investment grade for this ZIP code would be considered low due to the mismatch between FMR and actual market rents, coupled with the high cost of ownership. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high mortgage costs and the limited FMR coverage, investors should consider focusing on smaller units like 0BR or 1BR apartments. These units have lower FMR rates ($2300 and $2570 respectively), which might better align with the mortgage payments and operating expenses. Additionally, smaller units are often easier to manage and maintain. 2. **Seek Government Subsidies**: Investors should explore government programs and subsidies that could help bridge the gap between FMR and actual mortgage payments. Programs such as Low-Income Housing Tax Credits (LIHTC) or other federal and state incentives might provide additional financial support to make the investment more feasible. #### Bottom Line Given the high mortgage costs relative to the FMR rates and the tight market conditions, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The financial pressures of owning and maintaining properties at the FMR levels make it difficult to achieve positive cash flow, and the limited availability of affordable units suggests that finding suitable properties will be challenging. Investors looking to enter the Section 8 market in Los Angeles County should consider areas with lower price-to-FMR ratios and more manageable mortgage costs.

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.