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 | $1,710 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $531,193 | 0.36% | F |
| 2BR | $2,350 | $602,078 | 0.39% | F |
| 3BR | $2,980 | $677,138 | 0.44% | F |
| 4BR | $3,340 | $734,249 | 0.45% | F |
| 5BR | $3,874 | $817,265 | 0.47% | F |
U.S. Census Bureau data (2024)
Los Angeles 90044 covers the neighborhoods of Westmont and parts of South Los Angeles, characterized by dense residential blocks and a high proportion of multi-family housing. This area is undergoing significant redevelopment and infrastructure investment, particularly with the expansion of the C Line (Green Line) light rail, improving connectivity to downtown LA and the South Bay. A major local institution is Charles R. Drew University of Medicine and Science, which serves as a key employer and educational anchor in the vicinity, providing a steady stream of faculty, staff, and students seeking local housing.
From a quantitative perspective, the HUD SAFMR for a 2-bedroom unit in FY2024 is set at $2,000. This creates a notable gap compared to the current market rent of $2,329, meaning voucher holders effectively pay less than the prevailing market rate. With median home values at $646,524 and a median 2BR sale price of $596,222, acquisition costs are substantial. Units sit on the market for a median of 62 days, indicating moderate turnover. For landlords, the immediate cash-flow potential is slightly constrained by the $329 gap between the Fair Market Rent and actual market rents, requiring careful expense management.
The tenant pool is robust, driven by a renter share of 68.9% and a median household income of $53,302. This income level suggests strong demand for affordable housing subsidies like Section 8, as many residents may struggle with unassisted market rates. The presence of Charles R. Drew University adds a layer of stability, as academic and medical professionals often seek long-term rentals. While the area is historically urban, ongoing revitalization efforts and improved transit options are gradually enhancing the neighborhood's appeal for renters relying on public transportation.
The strongest investor angle here is stability and consistent occupancy rather than immediate market-rate cashflow. The high renter share guarantees a deep tenant pool, and the $2,000 SAFMR provides a reliable, government-backed income floor that covers a significant portion of the mortgage on a median-valued home. While the gap to market rent exists, the vacancy risk is mitigated by the area's dense population and limited affordable housing supply. Investors should view this as a defensive play focused on long-term tenure and reduced vacancy loss.
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.