Section 8 Fair Market Rent (FMR) for ZIP 90065 - 2027

Investment Score for ZIP 90065

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	$2,080
1 Bedroom	$2,330
2 Bedrooms	$2,870
3 Bedrooms	$3,640
4 Bedrooms	$4,070
5 Bedrooms	$4,721
6 Bedrooms	$5,288
7 Bedrooms	$5,711
8 Bedrooms	$5,997

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	$2,330	$717,189	0.32%	F
2BR	$2,870	$918,616	0.31%	F
3BR	$3,640	$1,169,517	0.31%	F
4BR	$4,070	$1,315,227	0.31%	F
5BR	$4,721	$1,452,849	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90065 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90065 is set by HUD for 2026 at $2480 for a two-bedroom unit. This figure represents 31.4% of the median household income in the area, which stands at $94,784. However, the actual rental prices in the market are significantly higher. According to Zillow, the median price for a two-bedroom unit in 90065 is $946,643, which translates to a price-to-FMR ratio of 31.8 times. This means that the actual rent for a two-bedroom unit could be around $2480 * 31.8 = $78,864 per year, or approximately $6,572 per month. For Section 8 voucher holders, this presents a significant challenge since the voucher amount is capped at the FMR, making it nearly impossible to find suitable housing without substantial out-of-pocket expenses. #### Affordability & Renter Profile ZIP code 90065 has a high occupancy rate of 95.5%, indicating that the housing market is tight and there is little vacancy. The renter population makes up 52.7% of the total population, suggesting a significant demand for rental properties. Given the high median household income and the extremely high price-to-FMR ratio, the typical renter in this area is likely to be well-off, able to afford high rents, or benefitting from other forms of financial assistance beyond Section 8 vouchers. The high cost of living and limited availability of affordable housing suggest that this is a very competitive market for renters who rely solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 90065 is challenging when considering cash flow based on FMRs. With the FMR for a two-bedroom unit at $2480, and the actual market rent being approximately $6,572 per month, the gap between the two is substantial. Investors relying on Section 8 vouchers would face significant financial pressure to cover their costs, including mortgage payments, property taxes, insurance, and maintenance. The high price-to-FMR ratio indicates that the investment grade for properties in this ZIP code is low if the investor is targeting cash flow from Section 8 voucher holders. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments where the FMR is lower ($1990 and $1780 respectively). These units might be more affordable for voucher holders and could provide better cash flow opportunities. 2. **Seek Alternative Funding Sources**: Due to the high cost of acquiring properties in this ZIP code, investors should explore alternative funding sources such as government grants, tax credits, or partnerships with local non-profits that support affordable housing initiatives. This can help offset the financial burden of operating at FMR rates. #### Bottom Line For Section 8-focused investors, the ZIP code 90065 is not recommended as a purchase target due to the extreme disparity between FMR and actual market rents. The high price-to-FMR ratio suggests that the investment would likely not be cash-flow positive, and the tight market conditions make it difficult to find tenants willing to pay only the voucher amount. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments and look for areas with a more favorable price-to-FMR ratio and greater affordability for voucher holders.

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.