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 | $2,930 |
| 1 Bedroom | $3,270 |
| 2 Bedrooms | $4,040 |
| 3 Bedrooms | $5,130 |
| 4 Bedrooms | $5,740 |
| 5 Bedrooms | $6,658 |
| 6 Bedrooms | $7,457 |
| 7 Bedrooms | $8,054 |
| 8 Bedrooms | $8,457 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,270 | $627,159 | 0.52% | F |
| 2BR | $4,040 | $1,105,199 | 0.37% | F |
| 3BR | $5,130 | $2,482,893 | 0.21% | F |
| 4BR | $5,740 | $3,980,849 | 0.14% | F |
| 5BR | $6,658 | $6,096,940 | 0.11% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 90069, located in West Hollywood, California, does not work favorably for Section 8 landlords. The Fair Market Rent (FMR) set at $3670 for fiscal year 2024 is slightly below the market rent, which stands at $3,758 according to ZORI. This means that landlords participating in the Section 8 program will receive less than what the market demands, resulting in a potential loss.
Acquisition in this area is challenging due to the high median home value of $1,271,481. Additionally, the average Days on Market (DOM) is 65 days, indicating a moderate pace of sales, but the low 0.2% price-cut share suggests that homes are generally sold close to their asking price, further complicating entry into this market.
Tenant demand in ZIP 90069 is robust. With a total population of 20,961, and 62.8% of residents being renters, there is a significant pool of potential tenants. However, the high cost of living and housing may deter some lower-income renters, despite the availability of Section 8 vouchers.
In conclusion, while there is strong tenant demand in West Hollywood, the rent math does not align well with market conditions, and property acquisition is costly and challenging. Landlords should carefully consider these factors before investing in this ZIP code, as the financial benefits may be limited and the initial investment substantial.
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.