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 |
ZIP 90099 in Los Angeles, CA, represents a thriving suburban community with approximately 40,099 residents. This working-class area is characterized by an affordable housing market, with median home values around $166,776 and a median household income of $45,099. The median age of the residents is 30 years, indicating a young and dynamic community with potential for growth.
The rent economics in ZIP 90099 are favorable for Section 8 investors. The Fair Market Rent (FMR) for FY 2024 is set at $2,540, while the median rent in the area is $1,252. This significant gap between FMR and market rent provides an opportunity for hands-on value-add buyers to capitalize on the discrepancy.
The place fits both a hands-off voucher operator and a hands-on value-add buyer. However, the latter stands to gain more from the lower market rents compared to the FMR. Given the below-average cost of living index of 59, which is lower than the national average of 100, this area offers higher disposable income and improved quality of life for residents. Additionally, the unemployment rate is 6.2%, and the employment rate is 94.7%, suggesting a relatively stable job market.
In conclusion, ZIP 90099 presents a balanced investment opportunity for both hands-off and hands-on Section 8 investors. The disparity between the FMR and the actual median rent provides a unique advantage for those willing to actively manage their properties to maximize returns.
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.