Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
The Section 8 market analysis for ZIP code 90070 in Los Angeles reveals a challenging environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area stands at $2540 for FY 2024. However, due to limited data on current market rents, it's difficult to provide an exact comparison. Based on the available HUD FMR, voucher tenants in this area would typically cashflow marginally, if at all, without premium units that can command higher rents.
To derive insights into the rent-to-price ratio, we consider the median home value in the area. Unfortunately, the specific figure for median home value is not available, which complicates a direct rent-to-price ratio calculation. Despite this, the general trend in the Los Angeles housing market suggests that homes are relatively expensive compared to rents, which could imply a lower rent-to-price ratio. This dynamic often means that buying a property is less attractive than renting, especially for those relying on Section 8 vouchers.
The days on market (DOM) and price-cut share percentages are also unavailable for ZIP 90070, making it hard to assess the precise speed and ease of selling properties. Nonetheless, the high cost of homeownership and the marginal cashflow potential suggest that the market leans towards stability rather than rapid appreciation. Investors should focus on long-term strategies that leverage the steady demand for rental properties over short-term gains.
The strongest investor angle in ZIP 90070 is likely to be stability. Given the high median home values and the moderate cashflow potential from Section 8 vouchers, investors can expect a reliable, albeit modest, return on investment over time. Stability in this market offers a secure foundation for building a sustainable portfolio, especially for those who can manage their expenses effectively to maintain positive cashflow even with the HUD FMR.
Data Sources: FMR data from HUD (2027).
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.