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 for ZIP code 90084 reveals limited data points, making it challenging to provide a comprehensive Section 8 cap-rate picture. However, we can derive some insights based on the available information.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 90084 for FY 2024 is set at $2540 per month. This annualizes to $30,480, providing a baseline for rental income under the Section 8 program. Since the median home value is not available, we cannot directly calculate a gross yield for owning a property outright versus leasing it through Section 8. The lack of market rent data also hinders a direct comparison between Section 8 rents and market rates.
To infer the gross yield, we would typically compare the annualized FMR to the median home value. In this case, with the median home value being unavailable, we must rely on other metrics such as the percentage of renters and days on market (DOM) to gauge the realism of the gross yield implied by the Section 8 FMR.
Without specific figures on renter density and DOM, it's difficult to determine how realistic the Section 8 FMR is compared to potential market yields. However, the absence of these data points suggests that there might be a lack of significant real estate activity or detailed reporting in this area, which could impact the overall investment landscape.
In conclusion, while the Section 8 FMR provides a fixed income stream of $30,480 annually for a 2-bedroom unit, the inability to compare this figure with market rents and median home values leaves much of the investment potential unclear. Landlords and small-portfolio investors should proceed with caution and seek additional local real estate data to better inform their decision-making process.
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.