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 | $1,810 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,020 | $457,858 | 0.44% | F |
| 2BR | $2,490 | $557,614 | 0.45% | F |
| 3BR | $3,160 | $650,384 | 0.49% | F |
| 4BR | $3,540 | $694,556 | 0.51% | F |
| 5BR | $4,106 | $773,130 | 0.53% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 90222, located in Compton, California, within Los Angeles County, reveals several key points regarding the viability of voucher tenants in this area. The HUD Fair Market Rent (FMR) for ZIP 90222 is set at $2170 per month for fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports a market rent of $1,522 per month for the same area.
This significant gap between the HUD FMR and the actual market rent means that voucher tenants can generate positive cash flow for landlords and small-portfolio investors. At the HUD FMR rate of $2170, landlords can expect to see a substantial difference in income compared to the average market rent, which stands at $1,522. This indicates that voucher tenants can cashflow comfortably at the FMR without the need for premium units.
The median home value in ZIP 90222 is $621,401. To derive the rent-to-price ratio, we divide the HUD FMR by the median home value. This yields a ratio of approximately 1.4%, suggesting that rental properties in this area are relatively affordable when compared to home values. However, since the market rent is lower, the actual rent-to-price ratio based on market conditions would be even lower, around 0.9%.
The data shows an N/A-day median Days on Market (DOM), indicating that there is no typical waiting period for property listings to sell. Additionally, the price-cut share is reported as 0.2%, which is exceptionally low, suggesting that properties are selling close to their initial asking prices. These factors indicate a strong rental market where demand for housing outstrips supply, making it less likely that landlords will need to reduce rents or offer incentives to attract tenants.
The strongest investor angle in ZIP 90222 is cash flow. With voucher tenants paying above the market rate, landlords can expect steady and reliable income without the need for premium units or extensive renovations. This makes the area particularly attractive for investors focused on generating immediate financial returns through rental income.
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.