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 | $2,980 |
| 1 Bedroom | $3,330 |
| 2 Bedrooms | $4,110 |
| 3 Bedrooms | $5,210 |
| 4 Bedrooms | $5,840 |
| 5 Bedrooms | $6,774 |
| 6 Bedrooms | $7,587 |
| 7 Bedrooms | $8,194 |
| 8 Bedrooms | $8,604 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,330 | $758,366 | 0.44% | F |
| 2BR | $4,110 | $1,168,243 | 0.35% | F |
| 3BR | $5,210 | $1,683,479 | 0.31% | F |
| 4BR | $5,840 | $2,149,169 | 0.27% | F |
| 5BR | $6,774 | $2,887,217 | 0.23% | F |
U.S. Census Bureau data (2024)
ZIP code 90277, located in Redondo Beach, CA, falls within the larger Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. When comparing its Fair Market Rent (FMR) of $3,400 for fiscal year 2024, market rent of $3,493, median home value of $1,645,167, and a renter share of 51.5% to typical ZIP codes within the same metro area, it's evident that 90277 represents a premium sub-market.
The FMR of $3,400 for ZIP 90277 aligns closely with the higher end of the spectrum observed in the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. This suggests that rental properties in Redondo Beach command relatively high rents, indicative of a robust local economy and demand for housing. The market rent figure of $3,493 further corroborates this, showing only a slight premium over the FMR, which is common in areas where rental demand is strong.
The median home value of $1,645,167 places 90277 among the highest-valued ZIP codes in the metro area. This high valuation is consistent with the characteristics of a premium sub-market, where property values are significantly above average due to desirable amenities, location, and overall quality of life.
A notable aspect is the 51.5% renter share. While this percentage alone does not necessarily indicate a sweet spot for Section 8 investors, when combined with the high median home value, it suggests that there is a substantial number of renters in an otherwise expensive housing market. This could imply that there is a segment of the population that finds rental options more affordable compared to purchasing homes, making it potentially attractive for landlords who cater to the rental market.
In summary, ZIP 90277 stands out as a premium sub-market within the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area, characterized by high rental rates and property values. The significant renter share indicates a strong demand for rental properties, which could present opportunities for landlords and small-portfolio investors looking to capitalize on the local rental market dynamics.
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.