Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 90077 under the Section 8 program are significant. Tenant turnover is a critical issue, with market rents at $9,644 versus the Federal Market Rent (FMR) of $3,820 for FY 2024. This discrepancy means that landlords may struggle to cover their costs if they rely solely on Section 8 vouchers. The vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable, which can lead to prolonged vacancies and lost income. Additionally, the deferred maintenance exposure is substantial, considering the typical home value of $3,083,912 and the median income of $206,319. Landlords must be prepared to handle any necessary repairs or maintenance without immediate financial support, as tenants might not have the means to contribute to such expenses.
Despite these challenges, there are mitigating factors that make ZIP 90077 an interesting investment opportunity. The renter share of the population stands at 15.5%, indicating a relatively high concentration of renters who may require housing assistance. High renter density typically translates into higher demand for rental properties, especially those accepting Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with vacancy and turnover.
In summary, while the financial gap between market rents and FMR presents a significant challenge, the high renter share suggests a robust demand for subsidized housing. For a first-time Section 8 landlord, the risks are moderate.
Data Sources: FMR data from HUD (2027). 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.