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 | $1,860 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,560 | $686,436 | 0.37% | F |
| 3BR | $3,250 | $809,215 | 0.4% | F |
| 4BR | $3,630 | $902,913 | 0.4% | F |
| 5BR | $4,211 | $1,075,922 | 0.39% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 90248, Gardena, CA, reveals a unique balance between yield and stability. The Fair Market Rent (FMR) for 2024 stands at $2,100, while the average market rent is $1,679. This indicates a higher potential yield compared to the local market, suggesting that landlords can charge above-market rents if they align their properties with the FMR standards.
However, the median home value of $817,437 places this area in a relatively expensive bracket, which could influence rental demand and pricing dynamics. Stability is another critical factor, and ZIP 90248 shows a mixed picture. With 34.7% of residents being renters, the area has a moderate level of rental occupancy, indicating that there is a significant but not overwhelming reliance on rental housing.
The absence of data on days on market (DOM) suggests that the rental turnover rate might be stable, although this cannot be confirmed without specific DOM figures. The median household income of $91,176 provides a strong economic foundation for tenants, reducing the risk of non-payment and enhancing overall stability.
Based on these figures, ZIP 90248 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The higher FMR allows for potentially lucrative rental income, but the solid median income supports tenant reliability and long-term occupancy. While the median home value is high, the combination of moderate rental rates and a decent percentage of renters ensures a balanced market that favors consistent cash flow over speculative gains.
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.