Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,610 | $684,606 | 0.53% | F |
| 2BR | $4,450 | $1,155,254 | 0.39% | F |
| 3BR | $5,650 | $1,802,431 | 0.31% | F |
| 4BR | $6,320 | $2,578,770 | 0.25% | F |
| 5BR | $7,331 | $3,638,065 | 0.2% | F |
U.S. Census Bureau data (2024)
In ZIP code 90064, located in Los Angeles, CA, the median fair market rent (FMR) for 2024 is set at $3500. This figure addresses the first concern regarding whether it can cover the mortgage on a $1,856,243 home. While the FMR does not directly indicate mortgage coverage, it provides insight into the rental market's capacity to support such investments. Assuming an average mortgage rate of around 4%, the monthly payment on a $1,856,243 home would be approximately $8,500. Clearly, the FMR alone cannot cover this mortgage amount. However, it's important to note that the FMR represents the maximum amount that a household receiving housing assistance could pay for rent, and it does not account for the potential to charge higher rents to non-assisted tenants.
The second objection relates to the level of renter demand, which stands at 50.5%. This percentage suggests that slightly over half of the households in ZIP 90064 are renters. For landlords and small-portfolio investors, this indicates a substantial market for rental properties. However, the demand must also be considered alongside supply and competition. Despite the high percentage of renters, the availability of affordable housing and competition from other landlords can influence actual occupancy rates. The data does not provide a complete picture of the local rental market dynamics, so further investigation into vacancy rates and property turnover might be necessary to fully assess demand.
The third concern is whether housing vouchers will keep pace with the market rents, which average around $3,570. In ZIP 90064, the FMR of $3500 is close to the market rent, indicating that voucher holders can potentially afford to live in this area without significant difficulty. However, the long-term sustainability of this trend depends on government funding and policy changes. The data does not offer projections beyond the current year, so caution is advised when relying solely on voucher income. Landlords should consider diversifying their tenant base to include both voucher recipients and those paying market rates.
In summary, while the FMR in ZIP 90064 may not fully cover the mortgage on a $1,856,243 home, it does suggest a robust rental market capable of supporting various types of investments. The 50.5% renter demand is significant but requires additional scrutiny of market conditions. Lastly, the alignment between FMR and market rents provides short-term assurance for voucher-supported tenancy, though long-term trends remain uncertain.
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.