Section 8 Fair Market Rent (FMR) for ZIP 90061 - 2027

Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area

Investment Score for ZIP 90061

Monthly Rent (2BR)

$2,410

Median Price (2BR)

$563,246

1% Rule

0.43%

Annual Yield

5.13%

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	$1,750
1 Bedroom	$1,950
2 Bedrooms	$2,410
3 Bedrooms	$3,060
4 Bedrooms	$3,420
5 Bedrooms	$3,967
6 Bedrooms	$4,443
7 Bedrooms	$4,798
8 Bedrooms	$5,038

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	$1,950	$476,999	0.41%	F
2BR	$2,410	$563,246	0.43%	F
3BR	$3,060	$646,548	0.47%	F
4BR	$3,420	$712,101	0.48%	F
5BR	$3,967	$753,997	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,051

Median Household Income

$61,046

Housing Units

8,649

Renter Percentage

64.7%

Occupancy Rate

92.7%

Renter Occupied

5,188

The Section 8 program in ZIP code 90061, located in Los Angeles, California, presents a significant challenge for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for zip code 90061 in fiscal year 2024 is set at $2000, whereas the market rent, as measured by Zillow's ZORI index, stands at $2768. This means that the FMR is $768 less than the market rent, representing a 27.7% discount.

This gap creates a scenario where landlords who accept Section 8 vouchers will be renting their properties at a rate significantly below the open-market price. Given that 64.7% of residents in Los Angeles are renters, and the median income is $61,046, the demand for affordable housing is high. However, the median home value of $633,077 underscores the overall expensive nature of the real estate market in the area, which can lead to higher expectations for rental income.

The cost of housing voucher tenants below open-market rates can be summarized in two key points:

Economic Yield Play: Accepting Section 8 vouchers can be seen as an economic yield play, where landlords trade higher occupancy rates for lower rents. Despite the lower rental income, the guaranteed payment structure and stability of the federal government backing these vouchers can provide a steady cash flow, which is particularly attractive in a volatile market.
Opportunity Cost: Renting below market rates means landlords are foregoing potential revenue. In a competitive market like Los Angeles, where property values are high and demand for rentals is strong, landlords might consider the opportunity cost of renting to voucher holders versus open-market tenants. This cost includes not only the immediate difference in rent but also the long-term impact on property valuation and investment returns.

In conclusion, while the Section 8 program in ZIP 90061 offers a stable tenant base and predictable income through government subsidies, it comes with the trade-off of reduced rental income compared to the market rate. Landlords must weigh these factors carefully when deciding whether to participate in the program.

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.