Section 8 Fair Market Rent (FMR) for ZIP 90060 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 90060 in Los Angeles, CA, represents a vibrant suburban community with a total population of 40,060 residents. This area is characterized by an affordable housing market, with median home values around $163,117. The median household income stands at $45,060, placing it in a working-class bracket.

In terms of the rental market, the median rent in this area is $1,251, significantly lower than the Fair Market Rent (FMR) of $2,540 for ZIP code 90060 as of the fiscal year 2024. This discrepancy highlights a potential opportunity for landlords and small-portfolio investors to capitalize on the difference between market rents and the FMR.

Given the relatively low median rent compared to the FMR, this area could be well-suited for hands-off voucher operators. The lower rent allows for a higher subsidy gap, potentially leading to better returns for those who can secure Section 8 tenants. However, the area also presents itself as a target for hands-on value-add buyers due to its growing population and dynamic community. With a median age of 29.2 years, there is a youthful demographic that may be interested in improving their living conditions, thereby creating opportunities for investors who are willing to renovate properties and offer them at slightly higher market rents.

To summarize, 90060 offers a balanced opportunity for both hands-off and hands-on investors. Voucher operators can benefit from the lower market rents, while value-add buyers might find success in a community that is showing signs of growth and development.

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.