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 analysis of ZIP code 90079 within the Los Angeles-Long Beach-Glendale metropolitan area reveals several key points for real estate investors interested in the Section 8 housing voucher program.
Regarding the rent math, the Fair Market Rent (FMR) set at $2540 for fiscal year 2024 is the benchmark for determining whether rental units qualify under the Section 8 program. However, without specific market rent data for comparison, it's challenging to evaluate if this FMR accurately reflects the local rental market. Landlords must ensure that their rental rates do not exceed this amount to remain eligible for the program.
In terms of acquisition affordability, the lack of detailed data on median home values, days on market (DOM), and the percentage of price reductions indicates that further research is necessary. These metrics would provide insight into how competitive the market is for purchasing properties in ZIP 90079, which is crucial for small-portfolio investors looking to acquire new assets. Without this information, it's difficult to gauge the ease or cost of acquiring properties.
Concerning tenant demand, the absence of specific population figures and the percentage of renters in the area means that direct conclusions about the size of the potential tenant pool cannot be drawn. Typically, a high percentage of renters suggests strong demand for rental properties, which could be beneficial for landlords participating in the Section 8 program.
Verdict: The rent math works as long as landlords can operate profitably at the FMR of $2540 per month. However, without additional data on median home values, days on market, price reduction percentages, and population demographics, making a definitive judgment on the affordability of acquisitions and the strength of tenant demand is impossible. Investors should conduct thorough due diligence, focusing on local real estate trends and tenant needs, to make informed decisions about entering this market with Section 8 properties.
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.