Section 8 Fair Market Rent (FMR) for ZIP 90046 - 2027

Investment Score for ZIP 90046

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	$2,780
1 Bedroom	$3,100
2 Bedrooms	$3,830
3 Bedrooms	$4,860
4 Bedrooms	$5,440
5 Bedrooms	$6,310
6 Bedrooms	$7,067
7 Bedrooms	$7,632
8 Bedrooms	$8,014

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	$3,100	$539,612	0.57%	F
2BR	$3,830	$1,043,586	0.37%	F
3BR	$4,860	$1,767,444	0.27%	F
4BR	$5,440	$2,537,736	0.21%	F
5BR	$6,310	$3,534,210	0.18%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90046 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90046 in Los Angeles, CA, is set by HUD for 2026 as follows: - 0BR: $2350 - 1BR: $2630 - 2BR: $3280 - 3BR: $4160 - 4BR: $4630 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $1,078,814, which translates to a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio for a 2BR unit is 27.4x, indicating that the actual rental market is much more expensive than the FMR. Given these dynamics, voucher holders face significant constraints. They would likely struggle to find units that fall within their budget, especially since the occupancy rate is 89.2%, suggesting a tight rental market. Landlords might be hesitant to accept vouchers due to the high demand for rentals and the potential for higher rents from non-voucher tenants. #### Affordability & Renter Profile ZIP code 90046 has a population of 48,296, with 77.8% of residents being renters. This indicates a strong rental market with a high demand for housing. The median household income in the area is $96,250, which means that the majority of residents have higher incomes compared to the national average. Despite this, the high cost of living in Los Angeles makes it challenging for many residents to afford housing, particularly those relying on Section 8 vouchers. The affordability of housing for voucher holders is extremely limited. A 2BR unit's FMR of $3280 represents only 40.9% of the median income, highlighting the disparity between what voucher holders can afford and the actual rental prices. Given the high renter percentage and the limited supply of affordable units, the market is tight and oversupplied with expensive options. #### Investor Angle From an investor perspective, the ZIP code 90046 presents a challenging scenario. The FMRs are substantially lower than the actual rental market rates, making it difficult to achieve positive cash flow if relying solely on Section 8 vouchers. For example, a 2BR unit with an FMR of $3280 would need to generate significant additional revenue to cover the high mortgage payments associated with the median home value of $1,078,814. Investment grade in this market is low for Section 8-focused investors. The high price-to-FMR ratio suggests that properties are overpriced relative to the income levels of voucher holders. Additionally, the limited number of units available at FMR levels means that landlords who accept vouchers will likely face lower occupancy rates and increased vacancy costs. #### Specific Actionable Insights 1. **Target Luxury Rentals**: Given the high median income and the tight rental market, targeting luxury rentals could be more profitable. Investors should consider properties that cater to higher-income renters, who are more likely to pay above FMR rates. This strategy can help mitigate the financial risks associated with accepting Section 8 vouchers. 2. **Consider Mixed-Income Developments**: Developing mixed-income properties that include both market-rate and affordable units can provide a balanced approach. By offering some units at FMR rates while charging higher rents for others, investors can ensure steady cash flow and meet the needs of a diverse tenant base. 3. **Engage with Local Programs**: Explore local government programs that offer incentives for landlords who accept Section 8 vouchers. These programs can help offset the financial burden and improve the overall viability of investing in this ZIP code. #### Bottom Line For Section 8-focused investors, ZIP code 90046 is a challenging market due to the high price-to-FMR ratio and limited availability of affordable units. The recommendation is to **Skip** this ZIP code unless you can diversify your investment portfolio to include higher-income renters or engage in mixed-income developments. The current market conditions make it difficult to achieve positive cash flow solely through 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.