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 | $3,080 |
| 1 Bedroom | $3,440 |
| 2 Bedrooms | $4,250 |
| 3 Bedrooms | $5,390 |
| 4 Bedrooms | $6,030 |
| 5 Bedrooms | $6,995 |
| 6 Bedrooms | $7,834 |
| 7 Bedrooms | $8,461 |
| 8 Bedrooms | $8,884 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,250 | $1,120,778 | 0.38% | F |
| 3BR | $5,390 | $1,699,943 | 0.32% | F |
| 4BR | $6,030 | $2,184,891 | 0.28% | F |
| 5BR | $6,995 | $2,694,460 | 0.26% | F |
U.S. Census Bureau data (2024)
The potential downsides for a Section 8 landlord in ZIP 90245, El Segundo, CA, are significant. First, tenant turnover could be a major issue due to the disparity between the market rent at $3,121 and the Fair Market Rent (FMR) for fiscal year 2024 at $3,320. This gap suggests that tenants might struggle to cover their portion of the rent, leading to higher turnover rates.
Vacancy exposure is another concern. The Days on Market (DOM) figure is listed as N/A, which typically indicates that properties are either rented quickly or there's limited data available. However, this lack of clarity can pose a risk, as it's difficult to predict how long a property might remain vacant if a tenant leaves.
Deferred maintenance is also a risk factor. With a typical home value of $1,757,305 and a median income of $150,737, landlords must be prepared for the financial burden of maintaining properties that are likely older and may require substantial repairs. The high cost of living relative to income levels means that tenants might not have the means to keep up with necessary maintenance, leaving the landlord to shoulder these costs.
However, these risks are offset by the high renter share in the area. At 57.5%, a large proportion of residents are renters, which usually translates into a higher demand for housing vouchers. This dense rental market can provide a steady stream of Section 8 tenants, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.