Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,950 |
| 1 Bedroom | $3,290 |
| 2 Bedrooms | $4,070 |
| 3 Bedrooms | $5,160 |
| 4 Bedrooms | $5,780 |
| 5 Bedrooms | $6,705 |
| 6 Bedrooms | $7,510 |
| 7 Bedrooms | $8,111 |
| 8 Bedrooms | $8,517 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,290 | $690,995 | 0.48% | F |
| 2BR | $4,070 | $1,105,418 | 0.37% | F |
| 3BR | $5,160 | $1,899,974 | 0.27% | F |
| 4BR | $5,780 | $2,662,827 | 0.22% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 90094 in Los Angeles, CA, reveals a competitive landscape for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $3820 per month for fiscal year 2024. In contrast, the market rent, represented by Zillow's ZORI (Zillow Observed Rent Index), stands at $4208 per month.
This difference indicates that voucher tenants will cashflow marginally at the HUD FMR rate. Landlords must be cautious with their unit pricing to ensure profitability while remaining within the voucher limits. Premium units, which command higher rents, may be necessary to achieve positive cashflow consistently.
The median home value in ZIP 90094 is $1,357,484, leading to a rent-to-price ratio of approximately 0.00031. This low ratio suggests that buying a home in this area is significantly more expensive than renting, which can influence the decision-making process for potential buyers versus renters. However, given the high median home value, the focus for Section 8 investors should primarily be on rental income rather than property appreciation.
The area does not have available data on the median Days on Market (DOM) or the percentage of homes that require price cuts, but these metrics would typically be relevant for understanding the rent-versus-buy dynamics. Without these figures, it is clear that the primary consideration for investors remains the rental income and its alignment with the HUD FMR.
The strongest angle for Section 8 investors in ZIP 90094 is likely to be stability. Given the established nature of the Section 8 program and the consistent demand for affordable housing in this high-value area, investors can expect steady, reliable cashflow over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.