Section 8 Fair Market Rent (FMR) for ZIP 90063 - 2027

Investment Score for ZIP 90063

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	$1,680
1 Bedroom	$1,870
2 Bedrooms	$2,310
3 Bedrooms	$2,930
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,870	$512,531	0.36%	F
2BR	$2,310	$610,091	0.38%	F
3BR	$2,930	$694,317	0.42%	F
4BR	$3,280	$754,343	0.43%	F
5BR	$3,805	$828,260	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90063 (East Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90063 is set by HUD for 2026 and includes the following rates: - 0BR: $1440 - 1BR: $1630 - 2BR: $2070 (which is 34.1% of the median household income) - 3BR: $2650 - 4BR: $2920 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that these rates are significantly lower than the actual market rents in East Los Angeles. For instance, the Zillow median price for a 2BR property is $614,561, which translates to a monthly mortgage payment of approximately $2,470 if financed at a typical rate. This means that the price-to-FMR ratio for a 2BR unit is 24.7 times higher than the FMR, indicating a substantial gap between what voucher holders can afford and the actual rental costs. This gap creates significant constraints for voucher holders, as they may struggle to find properties that accept their vouchers and fall within the FMR limits. Landlords who are willing to participate in the Section 8 program must ensure that their rental rates do not exceed the FMR, which can be challenging given the high cost of housing in the area. #### Affordability & Renter Profile ZIP code 90063 has a population of 48,397, with 63.2% of residents being renters. The occupancy rate stands at 93.9%, suggesting a tight rental market where demand consistently exceeds supply. Given the median household income of $72,942, the affordability of housing is a critical issue. The FMR for a 2BR unit at $2070 represents only 34.1% of the median income, which is relatively low compared to the actual market rent. Rental units in this ZIP code are likely to be occupied by families and individuals who rely on the local economy for employment. The high percentage of renters indicates a strong demand for affordable housing options. The tight market conditions mean that landlords have a competitive advantage, but the challenge lies in finding tenants who can afford the rent without assistance or who qualify for Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 90063 presents both opportunities and challenges. The FMR for a 2BR unit is $2070, which is well below the Zillow median price for a 2BR property. If an investor were to purchase a property at the Zillow median price, the monthly mortgage payment would be around $2,470, assuming a 4% interest rate and a 30-year term. This means that even if the property is rented out at the FMR, the investor would not cover the mortgage payment, let alone other expenses such as maintenance, insurance, and property taxes. Given the high price-to-FMR ratio of 24.7x, it is unlikely that this ZIP code will be cash-flow positive for investors focusing solely on Section 8 vouchers. The investment grade for this area would be considered low due to the mismatch between the FMR and the actual market rent. Investors might need to consider alternative strategies, such as targeting areas with lower price-to-FMR ratios or seeking non-Section 8 tenants who can afford higher rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like 0BR and 1BR apartments. These units have FMRs of $1440 and $1630 respectively, which are closer to the actual market rents. This could provide a better chance of covering mortgage payments and other expenses. 2. **Consider Mixed Tenancy**: Investors might want to consider a mixed tenancy approach, where some units are rented to Section 8 voucher holders while others are rented to market-rate tenants. This strategy can help balance the cash flow and reduce dependency on a single type of tenant. 3. **Engage with Local Programs**: Investors should explore local government programs and incentives designed to support affordable housing. These programs might offer subsidies or tax breaks that can make Section 8-focused investments more viable. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 90063 is to **Skip** this market. The high price-to-FMR ratio makes it difficult to achieve positive cash flow, and the tight rental market suggests that finding suitable tenants who can afford the rent without assistance will be challenging. Investors looking to enter this market should carefully evaluate the financial feasibility and consider alternative strategies or markets with more favorable conditions for Section 8 properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.