Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
Investors considering ZIP 90050 in California must evaluate several critical factors to ensure profitability. One primary concern is whether the Fair Market Rent (FMR) of $2540 for the fiscal year 2024 will sufficiently cover the mortgage on a property. Unfortunately, the data does not provide the average home value or typical mortgage rates for ZIP 90050, making it impossible to definitively calculate if the FMR will cover the mortgage. However, investors should compare this figure against local mortgage costs and consider the stability of rental income.
A second objection might be the level of renter demand at the given percentage. The data indicates that the vacancy rate for ZIP 90050 is listed as N/A, which means we lack concrete evidence of how competitive the rental market is. To assess demand, investors should look into the broader Los Angeles area's rental trends, which can offer insights into the potential occupancy rates and the strength of the rental market.
The third point of contention is whether voucher holders will be able to keep up with market rents. In ZIP 90050, the voucher utilization rate is also marked as N/A, suggesting limited information on how effectively vouchers support tenants paying market rates. This uncertainty requires careful consideration of the proportion of voucher users in the area and their ability to meet rent increases. Investors should research the local housing authority's policies and recent trends in voucher allocations to gauge the impact on their investment.
To summarize, while the FMR of $2540 is a starting point, the lack of detailed data on home values, vacancy rates, and voucher utilization rates leaves some questions unanswered. Prudent investors should conduct further localized research to understand these dynamics better and make informed decisions.
Data Sources: FMR data from HUD (2027).
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.