Section 8 Fair Market Rent (FMR) for ZIP 90043 - 2027

Investment Score for ZIP 90043

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	$1,760
1 Bedroom	$1,970
2 Bedrooms	$2,430
3 Bedrooms	$3,080
4 Bedrooms	$3,450
5 Bedrooms	$4,002
6 Bedrooms	$4,482
7 Bedrooms	$4,841
8 Bedrooms	$5,083

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	$1,970	$535,010	0.37%	F
2BR	$2,430	$691,787	0.35%	F
3BR	$3,080	$843,052	0.37%	F
4BR	$3,450	$1,038,339	0.33%	F
5BR	$4,002	$1,160,453	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90043 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90043, as of 2026, is set at $2120 for a two-bedroom unit. This amount represents 39.3% of the median household income in the area, which stands at $64,792. However, the actual rental market in 90043 is significantly higher, with Zillow reporting a median price of $714,033 for a two-bedroom property. The price-to-FMR ratio of 28.1x indicates that landlords would be charging far above the FMR if they were to sell their properties at the median price on the market. This creates a significant constraint for voucher holders, as the FMR is much lower than what is typically charged in the market. For instance, a landlord might charge $2120 per month for a two-bedroom apartment, but the typical market rate could be much higher, making it difficult for voucher holders to find suitable housing. Additionally, the FMR for a three-bedroom unit is $2690, and for a four-bedroom unit, it is $2990, both of which are also below the market rates. #### Affordability & Renter Profile ZIP code 90043 has a population of 42,377, with 46.1% of residents being renters. This suggests a relatively high demand for rental properties in the area. The occupancy rate of 92.9% further supports the notion that the rental market is tight, with few vacancies available. Given the median household income of $64,792, many renters may struggle to afford the high market rates, especially those relying on Section 8 vouchers. The FMR for a two-bedroom unit is only 39.3% of the median income, indicating that even the FMR is a significant portion of the average renter's budget. This makes the rental market particularly challenging for low-income individuals who rely on government assistance. The high price-to-FMR ratio also implies that there is a substantial gap between what voucher holders can afford and what landlords are willing to accept in the current market. #### Investor Angle From an investor's perspective, the ZIP code 90043 presents a mixed picture. While the occupancy rate is high, suggesting strong demand for rental properties, the FMR is substantially lower than the market rates. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the cost of acquisition and maintenance. Given the Zillow median price of $714,033 for a two-bedroom property, the monthly mortgage payment on a 30-year fixed-rate loan at 5% interest would be approximately $3,400. Adding in property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR of $2120. Therefore, it is unlikely that an investor would achieve positive cash flow by renting at the FMR. The investment grade for this ZIP code is likely to be moderate to low due to the high acquisition costs relative to the FMR. Investors should be cautious about the financial viability of properties rented at FMR levels, given the tight rental market and the potential for higher rental rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1700, which is still below market rates but may offer better cash flow opportunities compared to larger units. For example, a one-bedroom unit priced at the FMR would generate $1700 per month, while a two-bedroom unit would generate $2120 per month. The difference in acquisition cost between these units could be substantial, potentially leading to better cash flow. 2. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income properties where some units are rented at FMR levels and others at market rates. This approach could help balance the financial impact of renting at FMR levels while still generating sufficient revenue to cover overall expenses. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90043 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when renting at FMR levels. Additionally, the median household income and the percentage of renters suggest that the market is already competitive and that finding tenants willing to pay only the FMR could be difficult. Instead, investors might want to look into other ZIP codes with more favorable price-to-FMR ratios or consider alternative investment strategies that do not rely solely on Section 8 vouchers.

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.