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 | $3,210 |
| 1 Bedroom | $3,590 |
| 2 Bedrooms | $4,420 |
| 3 Bedrooms | $5,610 |
| 4 Bedrooms | $6,280 |
| 5 Bedrooms | $7,285 |
| 6 Bedrooms | $8,159 |
| 7 Bedrooms | $8,812 |
| 8 Bedrooms | $9,253 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,590 | $947,561 | 0.38% | F |
| 2BR | $4,420 | $1,141,055 | 0.39% | F |
| 3BR | $5,610 | $1,488,547 | 0.38% | F |
| 4BR | $6,280 | $1,926,961 | 0.33% | F |
| 5BR | $7,285 | $2,614,733 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 90290, located in Topanga, California, reveals a unique balance between yield and stability that may appeal to certain types of investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $3,820, which is notably lower than the market rent of $5,125. This discrepancy suggests a potential for higher rental yields if properties can be leased at market rates. However, the median home value in this area stands at $1,434,588, indicating that property acquisition costs are substantial.
On the stability axis, 90290 shows mixed indicators. With only 21.1% of residents being renters, the market has a relatively low percentage of tenants compared to other areas, which could imply less demand for rentals. Additionally, the median household income in the area is $149,304, suggesting that residents have the financial capability to afford higher rents, but it also indicates a strong preference for homeownership. The lack of available data on days on market (DOM) makes it challenging to assess the speed at which rental properties might turn over, but given the high median home value, it's reasonable to infer that rental turnovers could be slower and more stable.
Considering these factors, ZIP 90290 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground where the potential for above-average rental yields exists due to the disparity between FMR and market rents. However, the low percentage of renters and high median home value suggest a market with limited turnover and a preference for long-term, stable tenancies. For investors looking to capitalize on rental income while maintaining a degree of stability, this area offers an opportunity to achieve both, albeit with the understanding that property acquisition will require a significant investment.
To summarize, the rental yield potential in 90290 is driven by the gap between the FMR of $3,820 and the market rent of $5,125. Stability is indicated by the high median income of $149,304, which supports higher rents, and the low percentage of renters, suggesting a market that favors longer-term investments. The high median home value of $1,434,588 underscores the need for capital to enter this market effectively.
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.