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

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 90061

• Housing Authority of the City of Los Angeles (Los Angeles, CA) - 53,428 Section 8 vouchers
• Los Angeles County Development Authority (Alhambra, CA) - 27,058 Section 8 vouchers
• City of Long Beach Housing Authority (Long Beach, CA) - 7,862 Section 8 vouchers
• Housing Authority of the City of Glendale (Glendale, CA) - 1,667 Section 8 vouchers
• Housing Authority of the City of Santa Monica (Santa Monica, CA) - 1,536 Section 8 vouchers
• City of Pasadena Housing Department (Pasadena, CA) - 1,525 Section 8 vouchers
• Housing Authority of the City of Inglewood (Inglewood, CA) - 1,201 Section 8 vouchers
• Housing Authority of the City of Pomona (Pomona, CA) - 1,119 Section 8 vouchers
• Housing Authority of the City of Burbank (Burbank, CA) - 1,047 Section 8 vouchers
• Housing Authority of the City of Baldwin Park (Baldwin Park, CA) - 913 Section 8 vouchers

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). 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.