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 | $2,930 |
| 1 Bedroom | $3,270 |
| 2 Bedrooms | $4,040 |
| 3 Bedrooms | $5,130 |
| 4 Bedrooms | $5,740 |
| 5 Bedrooms | $6,658 |
| 6 Bedrooms | $7,457 |
| 7 Bedrooms | $8,054 |
| 8 Bedrooms | $8,457 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,040 | $1,361,413 | 0.3% | F |
| 3BR | $5,130 | $1,773,539 | 0.29% | F |
| 4BR | $5,740 | $2,187,232 | 0.26% | F |
| 5BR | $6,658 | $2,796,425 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 90232, located in Culver City, CA, within Los Angeles County, reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for FY 2024 stands at $3370, whereas the market rent, as measured by Zillow's ZORI index, is $3,778. This indicates that voucher tenants will cashflow marginally, with landlords receiving slightly less than the market rate.
To further understand the dynamics, consider the median home value in the area, which is $1,737,086. By comparing this figure with the HUD FMR, we can derive a rent-to-price ratio. At $3370 per month, the annualized rent is approximately $40,440, leading to a rent-to-price ratio of about 2.33%. This ratio suggests that the area is more suited for homeownership rather than renting, but it still offers opportunities for rental investment.
The median Days on Market (DOM) and the percentage of homes that experience price cuts are not available, which means that there isn't enough data to fully assess the rent-versus-buy dynamics. However, the slight discrepancy between the HUD FMR and the market rent implies that landlords will need to focus on maintaining operational efficiencies and ensuring premium unit quality to maximize profitability.
In conclusion, while the cashflow potential for Section 8 investors in ZIP 90232 is somewhat limited due to the marginal difference between HUD FMR and market rent, the strong stability of the local real estate market provides a solid foundation for long-term investment. Stability remains the strongest investor angle in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.