Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,340 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 90058 in the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for this area is set at $2000 for the fiscal year 2024, which is significantly higher than the market rent reported by the Census ACS at $1,088. This means that voucher tenants will generate positive cashflow for landlords and small-portfolio investors.
To further understand the investment potential, consider the median home value in ZIP 90058, which stands at $580,656. Using this figure, we can derive a rent-to-price ratio. With a monthly rent of $1,088, the annual rent is approximately $13,056. Dividing this by the median home value yields a rent-to-price ratio of roughly 2.25%. This indicates that rental income represents a modest portion of the property's value, suggesting that the primary benefit of investing in this area would be through cashflow rather than appreciation.
It is important to note that the Day on Market (DOM) and price-cut share percentages are not available, but given the significant gap between the HUD FMR and the market rent, it is likely that the rent-versus-buy dynamics favor renting. This supports the idea that voucher tenants will not only cashflow but do so comfortably, even in standard units, without the need for premium upgrades.
The strongest angle for investors in ZIP 90058 is undoubtedly the cashflow potential. Given the substantial difference between the HUD FMR and the actual market rent, landlords can expect consistent and positive returns from Section 8 voucher tenants. This makes the area an attractive option for those looking to stabilize their investment portfolio with reliable income streams.
Data Sources: FMR data from HUD (2027). 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.