Section 8 Fair Market Rent (FMR) for ZIP 90057 - 2027

Investment Score for ZIP 90057

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	$1,990
1 Bedroom	$2,220
2 Bedrooms	$2,740
3 Bedrooms	$3,480
4 Bedrooms	$3,890
5 Bedrooms	$4,512
6 Bedrooms	$5,053
7 Bedrooms	$5,457
8 Bedrooms	$5,730

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	$2,220	$357,271	0.62%	D
2BR	$2,740	$551,237	0.5%	F
3BR	$3,480	$771,340	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90057 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90057 is set by HUD for 2026, with specific rates for different bedroom sizes. The FMR for a two-bedroom unit is $2,430, which represents 65.1% of the median household income in the area. However, the actual rent prices can be significantly higher. For instance, the Zillow median price for a two-bedroom rental property in 90057 is $564,622, which translates to a monthly rent of approximately $4,705 when considering typical mortgage payments and property taxes. This results in a price-to-FMR ratio of 19.4x, indicating that actual rents are much higher than the FMR. This disparity creates significant constraints for voucher holders. A tenant with a Section 8 voucher would find it challenging to secure a two-bedroom rental at the Zillow median price, as the voucher amount ($2,430) would fall far short of covering the actual rent. Landlords may be reluctant to accept vouchers due to the high demand for properties and the potential for higher rents without vouchers. #### Affordability & Renter Profile ZIP code 90057 has a population of 46,629, with 96.2% of residents being renters. This indicates a highly rental-focused community, suggesting strong demand for rental units. The occupancy rate of 93.1% further supports the notion that the market is tight, with few vacancies available. Given the median household income of $44,823, most residents rely heavily on affordable housing options, including those supported by Section 8 vouchers. The high renter percentage and low vacancy rate suggest that the market is undersupplied, particularly for affordable units. The majority of renters are likely to be low-income families who depend on government assistance to afford housing. With such a high reliance on rental housing, any increase in rental prices could have a substantial impact on the local economy and the ability of residents to maintain stable living conditions. #### Investor Angle From an investor perspective, the ZIP code 90057 presents a mixed picture. While the occupancy rate is high, indicating a robust demand for rental properties, the FMR is significantly lower than the actual market rent. For example, the FMR for a two-bedroom unit is $2,430, while the actual median rent based on Zillow data is around $4,705. This means that landlords accepting Section 8 vouchers would need to operate at a loss if they were to charge the FMR. Given the high price-to-FMR ratio of 19.4x, it is clear that the market is not cash-flow positive at the FMR level. Investors looking to maximize returns would likely find it difficult to achieve profitability solely through Section 8 vouchers. Additionally, the investment grade in this ZIP code would be considered low due to the mismatch between FMR and actual market rents. #### Specific Actionable Insights 1. **Target Higher-Rent Properties**: Investors should consider targeting properties with higher rents that do not rely solely on Section 8 vouchers. For example, a two-bedroom unit priced at $4,705 per month would be more aligned with the actual market demand and could potentially yield better returns. 2. **Focus on Property Management**: Given the tight market and high demand, effective property management practices are crucial. This includes maintaining properties in good condition, ensuring timely repairs, and managing tenant relationships to minimize turnover and maintain occupancy levels. 3. **Consider Mixed-Income Developments**: Developing mixed-income properties that cater to both voucher holders and higher-paying tenants could help balance the financial risks associated with relying solely on Section 8 vouchers. By offering a mix of units at various price points, investors can ensure a steady stream of income while still providing affordable housing options. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the recommendation for ZIP code 90057 is to **skip**. The significant gap between FMR and actual market rents makes it difficult to achieve positive cash flow. Instead, investors might want to explore other ZIP codes where the FMR is closer to the actual market rent, or consider alternative investment strategies that include a mix of income levels to ensure financial viability.

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.