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 | $1,790 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,490 |
| 5 Bedrooms | $4,048 |
| 6 Bedrooms | $4,534 |
| 7 Bedrooms | $4,897 |
| 8 Bedrooms | $5,142 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,990 | $534,407 | 0.37% | F |
| 2BR | $2,460 | $642,969 | 0.38% | F |
| 3BR | $3,120 | $713,710 | 0.44% | F |
| 4BR | $3,490 | $760,793 | 0.46% | F |
| 5BR | $4,048 | $844,407 | 0.48% | F |
U.S. Census Bureau data (2024)
Lynwood (ZIP 90262) functions as a dense, urban-suburban hub in Los Angeles County, characterized by a heavy reliance on public transit and a strong working-class base. The city is strategically situated along the I-105 freeway, offering residents direct access to the LAX employment corridor and the broader South Bay economy. While traditional heavy industry has waned, local employment is anchored by service sectors and public administration, with the Lynwood Unified School District serving as a significant institutional employer and community pillar in the area.
From a numerical standpoint, Section 8 landlords must scrutinize the payment gap carefully. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,120, while current market rents (Zillow ZORI) sit at $2,138, resulting in a negligible deficit of $18. Investors looking to acquire will face a median home value of $688,931, with specific 2-bedroom properties trading at a median of $637,595. These assets move relatively slowly, with a median of 75 days on market, indicating a landscape where patient capital is required to secure inventory.
The tenant profile is defined by a 51.9% renter share and a median household income of $75,194. This income level, combined with the high cost of homeownership in the region, suggests sustained demand for rental units and a robust pool of potential voucher holders. Families are often drawn to the area for access to local amenities and major transit lines, though investors should verify individual school performance ratings as a key driver for long-term tenant retention.
The Section 8 verdict for Lynwood leans toward stability over immediate cash flow. Because the $2,120 FMR slightly trails the $2,138 market rate, this is not a "spread" market where government payments significantly outpace private rents. However, the high median income relative to rent and the substantial renter population indicate that voucher holders can be reliable, long-term occupants. The strongest angle here is securing a stable, government-backed income stream in a market where private sales take over two months to close.
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.