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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $541,760 | 0.35% | F |
| 2BR | $2,310 | $614,192 | 0.38% | F |
| 3BR | $2,930 | $675,644 | 0.43% | F |
| 4BR | $3,280 | $735,524 | 0.45% | F |
| 5BR | $3,805 | $827,795 | 0.46% | F |
U.S. Census Bureau data (2024)
Los Angeles 90037, encompassing the South LA neighborhoods of South Park and Vermont-Slauson, is a densely populated urban area defined by its heavy renter majority and industrial-residential mix. This district is currently undergoing significant infrastructure investment, most notably the expansion of the KLine (Crenshaw/LAX) light rail, which improves north-south connectivity through the corridor. The presence of major medical institutions like Kaiser Permanente Los Angeles Medical Center provides a stable employment base nearby, supporting local housing demand.
From a valuation perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit sits at $2,070 in FY2026, while current market rents average $2,418. This leaves a $348 gap between the Section 8 payment standard and market rates, meaning voucher holders may need to contribute additional income to secure top-tier units. Median home values are $661,985, with a median 2BR sale price of $608,149. However, investors should note the extended median days on market of 82 days, suggesting a sales cycle that requires liquidity patience.
The tenant pool here is exceptionally renter-heavy at 77.3%, supported by a median household income of $57,622. Given that the local earnings are modest relative to citywide averages, Section 8 vouchers provide a critical housing subsidy for a large portion of the demographic. The area is served by the Los Angeles Unified School District and features bus lines connecting to the Metro Blue Line, enhancing accessibility for carless residents despite the neighborhood’s primarily commercial character.
For Section 8 investors, 90037 offers a compelling stability play rather than a quick flip. The high renter concentration ensures a deep applicant pool, and the slight gap between the $2,070 FMR and market rents suggests that while maximum cash flow requires tenant contributions, the underlying demand is recession-resistant due to the income demographics. The primary investment angle here is long-term stability backed by guaranteed HUD payments in a market where private affordability is increasingly strained.
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.