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 | $2,500 |
| 1 Bedroom | $2,800 |
| 2 Bedrooms | $3,450 |
| 3 Bedrooms | $4,380 |
| 4 Bedrooms | $4,900 |
| 5 Bedrooms | $5,684 |
| 6 Bedrooms | $6,366 |
| 7 Bedrooms | $6,875 |
| 8 Bedrooms | $7,219 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,450 | $791,716 | 0.44% | F |
| 3BR | $4,380 | $978,896 | 0.45% | F |
| 4BR | $4,900 | $1,089,822 | 0.45% | F |
| 5BR | $5,684 | $1,239,907 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 90504, located in Torrance, California, within Los Angeles County, are defined by specific financial metrics that landlords need to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2860. This SAFMR is unique to ZIP 90504 and reflects the rental rates appropriate for this specific area.
In contrast, the local market rent for a two-bedroom unit, measured by ZORI (Zillow Observed Rent Index), is slightly higher at $2949. This indicates that the SAFMR is just below the average market rent, which is a common scenario in many areas.
A landlord participating in the Section 8 program should be aware that the voucher payment is not the full rent amount but rather a subsidy that covers the difference between what the tenant can afford and the rent. The tenant's portion is typically 30% of their adjusted income. If we assume an average adjusted income for a tenant, the voucher would cover the remaining balance up to the SAFMR limit of $2860.
To illustrate, if a tenant's adjusted income is $2000 per month, they would contribute 30% of that, which is $600. The voucher would then cover the remaining $2260 to reach the SAFMR of $2860. However, if the market rent exceeds the SAFMR, the landlord will not receive the full market rent from the voucher alone.
Section 8 also includes utility allowances. These allowances vary based on the size of the unit and the location. For a two-bedroom unit in ZIP 90504, the utility allowance is included in the total reimbursement but does not exceed the SAFMR. Therefore, the landlord should not expect additional payments beyond the SAFMR for utilities.
Given the SAFMR of $2860 and the local market rent of $2949, there is a $89 shortfall between what the voucher covers and the actual market rent. This means landlords will need to either accept a slightly lower rent or adjust their expectations when renting to Section 8 tenants in ZIP 90504.
Landlords must consider this economic reality when deciding whether to participate in the Section 8 program. While the program provides a stable source of income and ensures timely rent payments, it also comes with the challenge of potentially receiving less than the market rent for a property.
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.