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 potential risks for investing in Section 8 properties in ZIP code 90072, located in an unspecified area of California, must be carefully considered. Tenant turnover is a significant concern when comparing the market rent to the Fair Market Rent (FMR) of $2540 for FY 2024. The absence of specific market rent data suggests that local rental prices might not align with the FMR, leading to higher turnover rates if tenants seek more affordable options.
Vacancy exposure is another critical issue. With no data on days on market (DOM), it's challenging to predict how quickly properties can be filled. High DOM values indicate difficulty in finding tenants, which increases the risk of extended vacancies. This uncertainty is compounded by the lack of information on typical home values and median incomes, making it difficult to assess the financial health of potential tenants and the likelihood they will maintain the property.
Deferred maintenance is a risk factor often associated with lower-income households, who may not have the means to keep up with regular repairs and upkeep. Without knowing the typical home value and median income in the area, it's hard to gauge the extent of this risk. However, areas with a high concentration of renters often see increased demand for housing vouchers, which can stabilize the rental market and provide a steady stream of qualified tenants.
The renter share in the area is listed as N/A, but typically, a high renter share signifies strong demand for rental properties, including those that accept Section 8 vouchers. This demand can mitigate some of the risks associated with vacancy and tenant turnover. In summary, the lack of specific data points makes it difficult to fully assess the situation, but the presence of a likely robust rental market suggests there could be opportunities despite the risks.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.