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 | $2,580 |
| 1 Bedroom | $2,880 |
| 2 Bedrooms | $3,550 |
| 3 Bedrooms | $4,500 |
| 4 Bedrooms | $5,040 |
| 5 Bedrooms | $5,846 |
| 6 Bedrooms | $6,548 |
| 7 Bedrooms | $7,072 |
| 8 Bedrooms | $7,426 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,550 | $819,899 | 0.43% | F |
| 3BR | $4,500 | $1,512,527 | 0.3% | F |
| 4BR | $5,040 | $1,930,294 | 0.26% | F |
| 5BR | $5,846 | $2,303,893 | 0.25% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 90056, Ladera Heights, CA, in fiscal year 2024 is set at $3000. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It is important to note that this is not necessarily the rent you will receive; it's the benchmark used by the Housing Choice Voucher Program to determine the highest allowable rent.
In comparison, the Zillow Observed Rent Index (ZORI) for the same area stands at $2,515. This is the average rent price for similar properties in the neighborhood, based on actual listings and rents paid. The difference between the FMR and ZORI indicates that Section 8 can offer slightly higher rent payments compared to the market average, making it a potentially attractive option for landlords.
The 42.5% renter share suggests strong demand for rentals in Ladera Heights. This percentage reflects the proportion of households that rent rather than own their homes, indicating a significant number of potential tenants who might be looking for Section 8 housing.
When considering an investment property in this area, the median home value is around $1,669,123. This is the typical price range for acquiring a home in Ladera Heights, which should be factored into your investment calculations. Before deciding to take the plunge into a Section 8 rental, verify that your property meets all the necessary standards and requirements set by the local housing authority. This includes ensuring the unit is up to code, safe, and habitable, as these are non-negotiable conditions for participation in the program.
Section 8 rentals can provide a stable source of income, but they come with specific responsibilities and regulations. Ensure you understand the terms of the program and are prepared to comply with inspections and maintenance requirements to avoid penalties and ensure a smooth tenancy.
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.