Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
The potential risks for investing in Section 8 properties in ZIP code 90406 in Unknown, CA, must be carefully considered. First, tenant turnover can be a significant issue. The Fair Market Rent (FMR) for FY 2024 is set at $2540, but without knowing the current market rent, it's challenging to predict how competitive this might be. High turnover rates can lead to increased costs for landlords, including advertising, application processing, and background checks.
Vacancy exposure is another concern. The Days on Market (DOM) for the area is currently unknown, which makes it difficult to gauge how quickly rental units might fill. A longer DOM can result in lost rental income, especially if there is a delay in finding qualified tenants.
Deferred maintenance is also a critical factor. With no information available on the typical home value or median income in ZIP 90406, it's uncertain whether residents have the financial means to maintain their homes adequately. This could translate into higher repair and maintenance costs for landlords, particularly when dealing with Section 8 properties that often require additional oversight.
However, these risks must be weighed against the high concentration of renters in the area. The percentage of renters in ZIP 90406 is unknown, but high renter density typically correlates with a higher demand for housing vouchers. This suggests that there may be a steady pool of potential Section 8 tenants, which can help mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.