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 90086 within the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area reveals several key points regarding its suitability for Section 8 real-estate investment.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 90086 in fiscal year 2024 is set at $2540. However, without specific data on the market rent, it's challenging to directly compare these figures. Given that the FMR is established by HUD based on thorough research, it serves as a reliable benchmark for determining if rental income will cover expenses.
Moving on to the affordability of acquisitions, the lack of detailed information on the median home value, days on market (DOM), and percentage of homes needing price cuts makes a precise assessment difficult. These metrics are crucial for understanding how easily properties can be purchased and resold, impacting the overall cost and liquidity of investments in this area.
The third question concerns tenant demand. Without specific population and renter share data, it's impossible to quantify the exact demand for rental housing. However, the broader context of Los Angeles suggests a significant need for affordable housing, which could translate into strong demand for Section 8 properties.
In conclusion, while the rent math appears favorable with an FMR of $2540, the absence of critical data points such as market rent, median home value, days on market, price cut shares, and tenant demographics complicates a comprehensive evaluation. To make informed decisions, landlords and small-portfolio investors should seek out more detailed local real estate and demographic information to fill these gaps. Despite the incomplete data, the potential for high demand due to the larger Los Angeles context remains promising for those willing to conduct further research.
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.