Section 8 Fair Market Rent (FMR) for ZIP 90254 - 2027

Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area

Investment Score for ZIP 90254

Monthly Rent (2BR)

$4,310

Median Price (2BR)

$1,556,592

1% Rule

0.28%

Annual Yield

3.32%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,130
1 Bedroom	$3,490
2 Bedrooms	$4,310
3 Bedrooms	$5,470
4 Bedrooms	$6,120
5 Bedrooms	$7,099
6 Bedrooms	$7,951
7 Bedrooms	$8,587
8 Bedrooms	$9,016

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,490	$892,249	0.39%	F
2BR	$4,310	$1,556,592	0.28%	F
3BR	$5,470	$2,187,324	0.25%	F
4BR	$6,120	$3,058,072	0.2%	F
5BR	$7,099	$4,766,609	0.15%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

19,063

Median Household Income

$166,442

Housing Units

10,385

Renter Percentage

49.4%

Occupancy Rate

86.0%

Renter Occupied

4,413

A landlord considering purchasing a property in ZIP 90254 (Hermosa Beach, CA) for Section 8 must follow a structured decision-making process based on the following criteria:

1) Does the Fair Market Rent (FMR) of $3,720 cover the debt service on a $2,237,784 property?

No. The FMR of $3,720 is insufficient to cover the debt service on a property valued at $2,237,784. To determine if FMR clears debt service, calculate the monthly mortgage payment using the typical interest rates and loan terms. Given an average interest rate and a standard loan term, the monthly mortgage payment would likely exceed $3,720, making it financially unfeasible to rely solely on Section 8 tenants for debt coverage.

2) Is the market rent ($3,939 ZORI) above, at, or below the FMR?

It Depends. The market rent of $3,939 is slightly above the FMR of $3,720. This suggests that landlords can potentially command higher rents from non-Section 8 tenants. However, the difference is minimal, indicating that there might be limited premium over the FMR. Landlords should consider the local rental market dynamics and tenant preferences when deciding whether to focus on Section 8 or other types of tenants.

3) Are 49.4% renters and N/A-day days on the market sufficient demand?

Yes. With 49.4% of residents being renters, there is a significant portion of the population that relies on rental housing, which includes potential Section 8 tenants. Although the days on the market (DOM) are listed as N/A, this typically indicates a strong rental market where properties are leased quickly. Given the high percentage of renters, landlords can expect steady demand for their properties, even if they decide to participate in the Section 8 program.

Based on these criteria, a landlord should carefully evaluate the financial viability of a $2,237,784 property in Hermosa Beach, CA. The FMR does not sufficiently cover the debt service, but the market rent is slightly higher, providing some flexibility. Additionally, the rental market has a substantial demand, with nearly half of the residents being renters, ensuring that properties will likely be occupied without extended vacancy periods.

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.