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 | $2,080 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,870 |
| 3 Bedrooms | $3,640 |
| 4 Bedrooms | $4,070 |
| 5 Bedrooms | $4,721 |
| 6 Bedrooms | $5,288 |
| 7 Bedrooms | $5,711 |
| 8 Bedrooms | $5,997 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,330 | $467,179 | 0.5% | F |
| 2BR | $2,870 | $673,208 | 0.43% | F |
| 3BR | $3,640 | $837,027 | 0.43% | F |
| 4BR | $4,070 | $952,518 | 0.43% | F |
U.S. Census Bureau data (2024)
Investors often have valid concerns when considering properties in ZIP 90260, Lawndale, CA. One common objection is whether the Fair Market Rent (FMR) of $2,470 for the fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $814,642. The answer is that it depends on the specific mortgage terms and interest rates, but generally, an FMR of $2,470 is likely insufficient to cover the monthly mortgage payments on a home of this value. This highlights the need for careful financial planning and possibly seeking additional income sources.
A second concern is the level of renter demand, which stands at 57.4%. While this percentage suggests a moderate interest in rental properties, it is important to note that the remaining 42.6% might prefer homeownership. However, the rental market in Lawndale appears stable, with a significant portion of residents choosing to rent. This indicates that there is a reasonable demand for rental units, although it may not be as high as in areas with a stronger rental preference.
The final objection pertains to the ability of housing vouchers to keep up with market rents, which average around $3,194. Housing vouchers typically aim to cover a substantial portion of the market rent, but they do not always match the exact amount. In Lawndale, the gap between voucher coverage and market rents could pose a challenge for landlords. It is crucial to understand the specifics of voucher programs and their reimbursement rates to ensure that the difference can be managed effectively.
To summarize, while investing in ZIP 90260 presents opportunities, it also comes with challenges. The FMR does not seem to cover the mortgage on a median-priced home, indicating a need for thorough financial analysis. Renter demand is present but not overwhelming, suggesting a balanced market. Lastly, the discrepancy between voucher coverage and market rents must be considered, as it can impact profitability. These points should be carefully weighed against the potential benefits of the area, such as location and community factors, before making an investment decision.
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.