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 | $2,020 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,960 |
| 5 Bedrooms | $4,594 |
| 6 Bedrooms | $5,145 |
| 7 Bedrooms | $5,557 |
| 8 Bedrooms | $5,835 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,260 | $645,988 | 0.35% | F |
| 2BR | $2,790 | $773,920 | 0.36% | F |
| 3BR | $3,540 | $867,103 | 0.41% | F |
| 4BR | $3,960 | $987,583 | 0.4% | F |
| 5BR | $4,594 | $1,160,338 | 0.4% | F |
U.S. Census Bureau data (2024)
Hawthorne (90250) is a transforming South Bay city defined by its strong aerospace legacy and proximity to major job centers. The local economy is anchored by SpaceX, which operates a massive manufacturing facility at the intersection of Crenshaw Boulevard and Jack Northrop Avenue, driving significant employment and technical demand in the area. This industrial presence, combined with typical working-class suburban sprawl, creates a market with a high volume of renters seeking proximity to LAX and the greater Los Angeles tech corridor.
From a financial perspective, the data reveals a clear opportunity for subsidy utilization. The HUD Fair Market Rent (FMR) for a 2-bedroom unit sits at $2,410, while the current market rent (Zillow ZORI) is approximately $2,055. This creates a favorable gap of $355 per month, meaning a voucher payment will likely exceed standard market expectations. Despite this rental potential, entry costs are steep, with a median home value of $882,170 and a median 2BR sale price of $783,868. Properties are moving relatively slowly, with a median of 56 days on market, suggesting buyers have leverage in negotiations.
The tenant pool here is dense, with a renter share of 68.1% and a median household income of $78,331. This income level is substantial but often struggles to compete with soaring market rates, driving steady demand for housing assistance. The neighborhood offers robust transit options, including the Metro C Line (Green Line), and is served by the Hawthorne School District, providing essential amenities that appeal to long-term renters looking for stability near employment hubs.
The Section 8 verdict for 90250 is positive for investors focused on immediate cash flow rather than rapid appreciation. The $355 spread between the 2BR FMR and market rent is the strongest quantitative indicator, allowing investors to secure guaranteed payments above local comps. Given the high cost of entry ($882,170 median value) and moderate sales velocity (56 days), maximizing income through the voucher program is the most viable strategy to ensure healthy yields in this high-cost coastal market.
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.