Section 8 Fair Market Rent (FMR) for ZIP 90231 - 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 a landlord should buy properties in ZIP 90231 for Section 8, follow this decision tree:
- 1) Does FMR $2540 cover debt service?
- Yes: If the Fair Market Rent (FMR) of $2540 per month for ZIP 90231 can sufficiently cover the mortgage and other expenses, then it's a viable option. Proceed to the next question.
- No: If the FMR does not clear the debt service, buying here for Section 8 would be financially unwise. Look elsewhere where the FMR can adequately support your financial obligations.
- 2) Is market rent above, at, or below FMR?
- Above: If the market rent is higher than the FMR of $2540, then you may want to consider other investment strategies that take advantage of higher market rates. Section 8 might not be the best use of your capital in this case.
- At: If market rents are approximately equal to the FMR, Section 8 could be a stable choice. However, you must still evaluate demand and competition.
- Below: If market rents are below the FMR, Section 8 could provide a more reliable income stream compared to market-rate rentals.
- 3) Is there sufficient demand?
- Yes: If the percentage of renters and days on the market (DOM) indicate strong demand, such as a high percentage of renters and low DOM, then the area is likely attractive for Section 8 investments. The FMR of $2540 can help stabilize your rental portfolio.
- No: If the percentage of renters is low and the DOM is high, indicating weak demand, then Section 8 may not be the best strategy. Consider areas with higher demand for rentals.
- It Depends: If demand indicators are mixed, further analysis is required. Evaluate local economic conditions, job growth, and population trends to make a more informed decision.
The final decision to invest in ZIP 90231 for Section 8 hinges on these factors. If the answers lead to a "Yes" on all points, then proceed with confidence. If any point leads to a "No," reconsider this location. If the answer is "It Depends," gather more specific data about the neighborhood and consult with local real estate professionals before making a decision.
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.