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 | $2,160 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,980 |
| 3 Bedrooms | $3,780 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,420 | $812,880 | 0.3% | F |
| 2BR | $2,980 | $1,069,876 | 0.28% | F |
| 3BR | $3,780 | $1,311,291 | 0.29% | F |
| 4BR | $4,230 | $1,585,743 | 0.27% | F |
| 5BR | $4,907 | $1,768,865 | 0.28% | F |
U.S. Census Bureau data (2024)
2480 is the Fair Market Rent (FMR) for ZIP 90041 in Los Angeles, CA, for fiscal year 2024, indicating the maximum amount a Section 8 participant can pay in rent. 3001 represents the actual market rent, or ZORI, which is slightly above the FMR, suggesting landlords may need to adjust their expectations when dealing with Section 8 tenants. 1281161 is the median home value in the area, reflecting a significant investment for homeowners but also high property values for potential rental investments. 45.4 is the percentage of renters in the ZIP code, highlighting a substantial demand for rental properties. 114526 is the median income figure, which helps determine the eligibility threshold for Section 8 participants. N/A signifies that the data on days on market (DOM) is not available, possibly due to a highly competitive rental market. 0.2 is the percentage of listings that were price-cut, indicating a relatively stable market where landlords don't often have to reduce their asking rents.
The disparity between the FMR at 2480 and the market rent at 3001 means landlords should be prepared to accept a lower rent payment if they choose to participate in the Section 8 program. However, given the high median home value at 1281161 and the strong rental demand represented by the 45.4 renter share, the potential returns on investment in this area remain attractive. The median income at 114526 suggests that many residents could qualify for Section 8 assistance, increasing the pool of potential tenants. The lack of fluctuation in rental prices, as evidenced by the low 0.2 price-cut share, indicates a steady market where landlords can maintain consistent income streams.
To conclude, while participating in Section 8 in ZIP 90041 requires accepting a lower rent compared to the market rate, the overall stability and high demand for rentals make it a viable option for landlords and small-portfolio investors seeking long-term, reliable tenancy. The verdict on Section 8 for this area is positive, with careful consideration of the financial implications.
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.