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 | $2,580 |
| 1 Bedroom | $2,880 |
| 2 Bedrooms | $3,550 |
| 3 Bedrooms | $4,500 |
| 4 Bedrooms | $5,040 |
| 5 Bedrooms | $5,846 |
| 6 Bedrooms | $6,548 |
| 7 Bedrooms | $7,072 |
| 8 Bedrooms | $7,426 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,880 | $619,129 | 0.47% | F |
| 2BR | $3,550 | $988,822 | 0.36% | F |
| 3BR | $4,500 | $1,283,238 | 0.35% | F |
| 4BR | $5,040 | $1,690,185 | 0.3% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 90404, Santa Monica, CA, are significant. Tenant turnover is a primary concern, as the market rent stands at $3,349 compared to the Federal Market Rent (FMR) of $2,680 for FY 2024. This disparity can lead to frequent changes in occupancy, increasing administrative burdens and operational costs.
Vacancy exposure is another issue, as the Days on Market (DOM) data is not available. This lack of information makes it difficult to predict how long properties might remain vacant between tenants, which can be costly due to lost rental income. The typical home value in the area is $1,067,209, while the median income is $95,139. These figures suggest that landlords may face deferred maintenance issues, as tenants might not have the financial resources to keep up with the upkeep required for such high-value properties.
However, these risks must be weighed against the high renter share in the area, which is 78.6%. High renter density generally indicates strong demand for rental housing, including Section 8 vouchers. This demand can provide a steady stream of tenants and reduce the likelihood of extended vacancies.
In conclusion, the risk for a first-time Section 8 landlord in ZIP 90404 is moderate.
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.