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 | $2,320 |
| 1 Bedroom | $2,590 |
| 2 Bedrooms | $3,190 |
| 3 Bedrooms | $4,050 |
| 4 Bedrooms | $4,530 |
| 5 Bedrooms | $5,255 |
| 6 Bedrooms | $5,886 |
| 7 Bedrooms | $6,357 |
| 8 Bedrooms | $6,675 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,590 | $781,389 | 0.33% | F |
| 2BR | $3,190 | $1,149,694 | 0.28% | F |
| 3BR | $4,050 | $1,465,634 | 0.28% | F |
| 4BR | $4,530 | $1,812,464 | 0.25% | F |
| 5BR | $5,255 | $1,897,458 | 0.28% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 90039, located in Los Angeles, CA, include tenant turnover and vacancy exposure. The market rent for the area is $3,077, while the Fair Market Rent (FMR) for FY 2024 is set at $2,770. This discrepancy suggests that tenants receiving Section 8 assistance might struggle to cover the difference between the FMR and the market rent, leading to higher turnover rates. With an average Days on Market (DOM) of 25 days, there's also a risk of prolonged vacancies if a tenant leaves, impacting cash flow.
Deferred maintenance is another concern due to the relatively high typical home value of $1,350,157 and the median income of $113,818. Landlords must be prepared to invest in property upkeep, as tenants may not have the financial means to contribute to such costs. The high cost of living and the gap between property values and incomes can strain a landlord's budget for necessary repairs and maintenance.
However, these risks are balanced by the high renter share in the area, which stands at 54.3%. High renter density typically translates into greater demand for rental properties, including those that accept Section 8 vouchers. This robust demand can help mitigate the impact of tenant turnover and vacancy exposure, as finding new tenants should be quicker and more straightforward.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 90039.
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.