Section 8 Fair Market Rent (FMR) for ZIP 90213 - 2027
Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if you should buy in ZIP 90213 for Section 8 investments, follow these steps:
- Step 1: Clearing Debt Service
- If the Fair Market Rent (FMR) of $2540 for ZIP 90213 in fiscal year 2024 can cover your debt service on a property, proceed to Step 2.
- If not, do not invest in this area for Section 8 purposes.
- Step 2: Market Rent Comparison
- If the market rent is above $2540, it means that the potential rental income could be higher than the FMR, which is positive but does not guarantee profitability due to Section 8 limitations.
- If the market rent is equal to $2540, the potential rental income matches the FMR, making it a break-even scenario.
- If the market rent is below $2540, then the FMR will cap your rental income, potentially leading to lower returns.
- Step 3: Demand Analysis
- If the percentage of renters and the days on market (DOM) indicate sufficient demand, you may consider investing. However, without specific percentages and DOM figures, it's difficult to quantify the demand accurately.
- If there is insufficient demand, then it would not be advisable to invest in ZIP 90213 for Section 8 properties.
The decision ultimately hinges on whether the FMR can meet your financial needs and if there is enough demand from tenants seeking Section 8 housing. Without concrete data on market rents and tenant demand, a definitive recommendation cannot be given. It depends on your specific financial situation and the local real estate market conditions.
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.