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 | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,610 | $980,992 | 0.37% | F |
| 2BR | $4,450 | $1,591,218 | 0.28% | F |
| 3BR | $5,650 | $2,905,733 | 0.19% | F |
| 4BR | $6,320 | $5,209,491 | 0.12% | F |
| 5BR | $7,331 | $9,865,624 | 0.07% | F |
U.S. Census Bureau data (2024)
The ZIP code 90210, located in Beverly Hills, California, represents a unique opportunity within a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. This classification is based on the significant disparity between the Fair Market Rent (FMR) set by HUD for fiscal year 2024 and the actual market rents.
In fiscal year 2024, the HUD FMR for ZIP 90210 is $3820. However, the average market rent stands at $12,011, indicating a substantial spread that can be leveraged for higher cash flows. Landlords and small-portfolio investors should note that this spread means properties in this area will command much higher rental rates than what is covered under Section 8, leading to additional income from non-subsidized units. The median home value in ZIP 90210 is an impressive $5,192,181, reflecting the high-end nature of the neighborhood and the potential for premium rentals.
Beverly Hills, with its luxury appeal and affluent residents, is not typically considered an area where appreciation plays would dominate investment strategies. The price-cut share stands at 0.2%, suggesting that very few listings require price reductions, while the N/A-day DOM (Days on Market) indicates that properties sell quickly once listed. These factors point towards a stable market rather than one with rapid growth potential.
ZIP 90210 also serves as a diversifier within a broader investment portfolio. With a 29.3% renter share, there is a notable portion of the population who choose to rent, even in this high-income area where the median household income is $187,801. This income level supports a diverse range of rental opportunities, from luxury apartments to single-family homes, catering to both local renters and those participating in the Section 8 program.
To summarize, ZIP 90210 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. Its high market rents and premium property values ensure that landlords can generate significant additional income from non-subsidized units, while still benefiting from the stability and demand for subsidized housing in this affluent area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.