Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,980 |
| 1 Bedroom | $3,320 |
| 2 Bedrooms | $4,100 |
| 3 Bedrooms | $5,200 |
| 4 Bedrooms | $5,820 |
| 5 Bedrooms | $6,751 |
| 6 Bedrooms | $7,561 |
| 7 Bedrooms | $8,166 |
| 8 Bedrooms | $8,574 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,320 | $604,985 | 0.55% | F |
| 2BR | $4,100 | $996,372 | 0.41% | F |
| 3BR | $5,200 | $1,746,573 | 0.3% | F |
| 4BR | $5,820 | $2,415,730 | 0.24% | F |
| 5BR | $6,751 | $3,696,390 | 0.18% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 90035, located in Los Angeles, California, presents a distinct opportunity and challenge for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for this area in fiscal year 2024 is $3240. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $3400. This means there is a $160 difference, representing approximately 4.94% of the market rent.
Given that the FMR is lower than the market rent, landlords who accept Section 8 housing vouchers will be renting their properties at a rate below the open-market value. While this can be seen as a loss in potential revenue, it also ensures a stable and reliable source of income through the government's voucher program. Tenants participating in Section 8 have their rent subsidized, which covers a significant portion of the total rent based on the tenant's income. Landlords must understand that while they might not achieve the maximum market rent, the security of having a tenant whose rent is guaranteed by the government can outweigh the financial gap.
In the broader context of Los Angeles, where 69.5% of residents are renters, the median home value is $1,616,549, and the median income is $105,013, the decision to participate in the Section 8 program requires careful consideration. The high median home value indicates a strong property market, but the relatively low median income suggests that many residents may struggle to afford market rents without assistance.
Accepting Section 8 tenants can help fill vacancies in a competitive rental market and provide a steady cash flow. However, landlords should be aware of the administrative requirements and potential maintenance costs associated with these units, as the lower rent may not fully cover the expenses. Despite these considerations, the stability offered by the Section 8 program can be an attractive option for landlords looking to maintain occupancy in a challenging economic environment.
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.