Section 8 Fair Market Rent (FMR) for ZIP 90047 - 2027

Investment Score for ZIP 90047

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	$1,840
1 Bedroom	$2,060
2 Bedrooms	$2,540
3 Bedrooms	$3,220
4 Bedrooms	$3,610
5 Bedrooms	$4,188
6 Bedrooms	$4,691
7 Bedrooms	$5,066
8 Bedrooms	$5,319

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,060	$527,439	0.39%	F
2BR	$2,540	$630,829	0.4%	F
3BR	$3,220	$717,549	0.45%	F
4BR	$3,610	$782,112	0.46%	F
5BR	$4,188	$846,597	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90047 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90047 in Los Angeles, California, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2160 per month. However, the Zillow median price for a two-bedroom property in this area is $624,154, which translates to a monthly rent of approximately $24.1x the FMR. This means that the actual market rent for a two-bedroom unit is around $52,086 ($2160 * 24.1), which is significantly higher than the FMR. Given this disparity, Section 8 voucher holders face significant constraints. The voucher amount is capped at the FMR, so tenants would have to find properties willing to accept a rent of $2160, which is far below the market rate. This makes it challenging for voucher holders to secure housing in this ZIP code, as landlords may prefer market-rate tenants who can afford higher rents. #### Affordability & Renter Profile ZIP code 90047 has a population of 50,974, with 44.0% of residents being renters. The median household income is $71,664, and the FMR for a two-bedroom unit represents 36.2% of this income. Given that the actual market rent is much higher, the rental market is quite tight, especially for those relying on Section 8 vouchers. The occupancy rate is 95.8%, indicating that there is very little vacancy in the rental market. This suggests that the demand for rental units is high, and the supply is relatively low. As a result, the market is likely to be competitive, with many potential renters vying for limited available units. This tight market condition makes it difficult for lower-income individuals to find affordable housing options. #### Investor Angle From an investor's perspective, the cash flow dynamics in ZIP code 90047 need to be carefully analyzed. The FMR for a two-bedroom unit is $2160, but the actual market rent is significantly higher. If an investor were to purchase a two-bedroom property at the Zillow median price of $624,154 and finance it with a mortgage, they would need to consider the following: - Assuming a 20% down payment, the initial investment would be $124,830.80. - With a typical mortgage interest rate of 5%, the monthly mortgage payment on the remaining $500,000 would be approximately $2667.92. - If the investor aims to rent out the property at the FMR of $2160, they would be operating at a loss each month before accounting for maintenance, taxes, insurance, and other expenses. Therefore, renting out a property at the FMR would not be cash-flow positive. To achieve positive cash flow, the investor would need to rent the property at a rate closer to the market value, which is around $52,086 per month. This highlights the challenge for investors focusing solely on Section 8 vouchers in this ZIP code. #### Investment Grade Considering the high market rent relative to the FMR, the investment grade for properties in ZIP code 90047 is low for Section 8-focused investors. The high price-to-FMR ratio indicates that the market is not aligned with the affordability goals of Section 8 programs. Investors looking to maximize returns would likely find better opportunities in areas where the FMR is closer to the market rent. #### Specific Actionable Insights 1. **Target Properties Below Market Value**: Investors should focus on acquiring properties that are priced below the Zillow median. For instance, if a two-bedroom unit is listed for $550,000 instead of $624,154, the monthly mortgage payment would decrease to about $2448.48. This could make it feasible to rent the property at the FMR of $2160 and still cover basic expenses, although it would still not be highly profitable. 2. **Consider Multi-Family Units**: Multi-family units might offer a better opportunity for cash flow. For example, a three-bedroom unit with an FMR of $2740 might be more attractive to landlords since it provides a slightly higher rent compared to a two-bedroom unit. Additionally, multi-family units can spread costs across multiple units, potentially improving overall profitability. #### Bottom Line For investors focused on Section 8 vouchers, ZIP code 90047 presents significant challenges due to the high market rent relative to the FMR. The recommendation for this ZIP code is to **Skip** unless investors can find properties priced significantly below the Zillow median or are willing to operate at a loss to provide affordable housing. The tight market and high price-to-FMR ratio make it difficult to achieve positive cash flow while adhering to Section 8 guidelines.

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.