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 | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,610 | $1,127,610 | 0.32% | F |
| 2BR | $4,450 | $1,568,374 | 0.28% | F |
| 3BR | $5,650 | $2,056,249 | 0.27% | F |
| 4BR | $6,320 | $2,763,679 | 0.23% | F |
| 5BR | $7,331 | $3,403,204 | 0.22% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 90291, located in Los Angeles, California, reveals a competitive rental environment. The HUD Fair Market Rent (FMR) for FY 2024 stands at $3820, while the market rent, as measured by Zillow's ZORI index, is slightly lower at $3,721. This indicates that voucher tenants will generally cashflow at the FMR level, albeit marginally. Landlords should expect to see positive cashflow primarily with units that have been upgraded or are in higher-demand locations.
The median home value in ZIP 90291 is $1,905,146, which yields a rent-to-price ratio of approximately 0.2%. This low ratio suggests that the area is heavily skewed towards homeownership, given the high property values relative to rents. However, for those seeking to invest in rental properties, the marginal cashflow potential combined with the strong demand for housing provides a solid opportunity.
The dynamics between renting and buying in this area are further underscored by the N/A-day median Days on Market (DOM) and a 0.2% price-cut share, indicating that homes sell quickly and without significant discounts. This points to a stable and robust local economy, where both renters and buyers find value in the area.
The strongest investor angle in ZIP 90291 is likely appreciation. Given the high median home value and the relatively stable rental market, investors can anticipate that property values will continue to rise over time, providing a reliable avenue for capital growth.
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.