Section 8 Fair Market Rent (FMR) for ZIP 90066 - 2027

Investment Score for ZIP 90066

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	$2,670
1 Bedroom	$2,980
2 Bedrooms	$3,680
3 Bedrooms	$4,670
4 Bedrooms	$5,220
5 Bedrooms	$6,055
6 Bedrooms	$6,782
7 Bedrooms	$7,325
8 Bedrooms	$7,691

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	$2,980	$612,054	0.49%	F
2BR	$3,680	$1,198,865	0.31%	F
3BR	$4,670	$1,756,724	0.27%	F
4BR	$5,220	$2,255,896	0.23%	F
5BR	$6,055	$2,963,038	0.2%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90066 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90066 in Los Angeles, California, as of 2026, is set at $3170 for a two-bedroom unit. This amount represents 33.3% of the median household income of $114,141 in the area. However, the actual rent for a two-bedroom unit in this ZIP code is significantly higher, with a Zillow median price of $1,217,270. This translates to a price-to-FMR ratio of 32.0x, indicating that the actual rental costs are much higher than what is considered fair market rent by HUD standards. Given these figures, voucher holders face significant constraints. The FMR is far below the actual market rent, making it challenging for tenants to find properties where landlords will accept their vouchers without additional financial contributions. For example, a tenant with a voucher for a two-bedroom unit would need to find a landlord willing to accept $3170 per month when the market rent is likely several times higher. This could lead to voucher holders either paying a substantial portion out-of-pocket or facing difficulties securing housing altogether. #### Affordability & Renter Profile ZIP code 90066 has a high occupancy rate of 93.5%, suggesting that the rental market is tight and there is little vacancy. With 61.7% of the population being renters, this indicates a strong demand for rental properties. Given the median household income of $114,141, the majority of residents can afford higher rents, but the significant disparity between FMR and actual market rents means that many low-income households struggle to find affordable housing. The high price-to-FMR ratio of 32.0x suggests that the rental market is highly competitive and expensive. This tight market makes it difficult for low-income renters to find affordable options, especially those relying on Section 8 vouchers. The high median home value also implies that the area is predominantly occupied by middle to upper-middle-class individuals who can afford the premium rents. #### Investor Angle From an investor perspective, the ZIP code 90066 presents a challenging scenario for cash flow if they are strictly adhering to FMR guidelines. At the FMR of $3170 for a two-bedroom unit, the rental income is substantially lower than the market rent. To illustrate, a property valued at $1,217,270 would typically command a monthly rent of around $10,144 (assuming a 1% annual rent-to-value ratio). Thus, accepting FMR rates would result in a significant shortfall in covering mortgage payments, maintenance, and other operational costs. Given the high price-to-FMR ratio, the investment grade for this ZIP code is poor for Section 8-focused investors. The limited number of units that can be rented at FMR rates and the difficulty in finding tenants willing to pay the difference make it less attractive for investors seeking steady cash flow. #### Specific Actionable Insights 1. **Focus on Larger Units**: Since the FMR for larger units (3BR and 4BR) is higher ($4020 and $4480 respectively), investors might consider acquiring properties with three or four bedrooms. These units have a better chance of attracting tenants who can cover the gap between FMR and market rent, especially if they are willing to share the cost. 2. **Consider Non-Section 8 Tenants**: Given the high median household income and the tight rental market, investors should explore renting to non-Section 8 tenants who can afford market rates. This strategy would ensure a more stable cash flow and reduce the risk associated with relying solely on government subsidies. #### Bottom Line For Section 8-focused investors, the ZIP code 90066 is not recommended due to the extremely high price-to-FMR ratio and the tight rental market. The recommendation is to **Skip** this ZIP code unless you are prepared to target larger units or non-Section 8 tenants who can pay closer to market rates. The high disparity between FMR and actual rents makes it financially unviable to rely solely on Section 8 vouchers for rental income.

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.