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 | $2,870 |
| 1 Bedroom | $3,210 |
| 2 Bedrooms | $3,960 |
| 3 Bedrooms | $5,020 |
| 4 Bedrooms | $5,620 |
| 5 Bedrooms | $6,519 |
| 6 Bedrooms | $7,301 |
| 7 Bedrooms | $7,885 |
| 8 Bedrooms | $8,279 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,210 | $580,337 | 0.55% | F |
| 2BR | $3,960 | $1,194,762 | 0.33% | F |
| 3BR | $5,020 | $1,917,481 | 0.26% | F |
| 4BR | $5,620 | $2,626,787 | 0.21% | F |
| 5BR | $6,519 | $3,365,984 | 0.19% | F |
U.S. Census Bureau data (2024)
The ZIP code 90048, located in the heart of Los Angeles, California, presents itself as a strong cash-flow anchor within a Section 8 portfolio strategy. This assessment is based on the fiscal year 2024 Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development at $3,560, which is slightly above the market average rental rate of $3,483. The spread between the FMR and the market rate indicates that landlords can expect to receive a higher rent payment through Section 8 vouchers compared to typical market conditions, ensuring a stable and reliable cash flow.
Beyond the immediate financial benefits, the median home value in ZIP 90048 is exceptionally high at $1,769,487. This suggests a robust local economy and a potentially lucrative market for property investment. However, the focus here is on rental income, and the Section 8 program provides a secure and consistent revenue stream that outperforms the market average. This makes it particularly attractive for landlords and small-portfolio investors looking to mitigate risks associated with fluctuating market rates.
The ZIP code also features a low 0.2% price-cut share and an N/A-day Days on Market (DOM), indicating that rental properties in this area do not typically require significant discounts to attract tenants, nor do they stay vacant for long periods. This further supports the idea that 90048 is a cash-flow anchor, as properties are likely to be occupied quickly and at close to the listed rent.
While the 72.1% renter share and median income of $103,495 might suggest opportunities for appreciation plays or diversification strategies, the primary advantage of ZIP 90048 lies in its ability to provide steady and above-market rental income through the Section 8 program. Landlords should prioritize this ZIP code for its potential to serve as a dependable cornerstone of their rental income portfolios.
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.