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 | $2,630 |
| 1 Bedroom | $2,930 |
| 2 Bedrooms | $3,620 |
| 3 Bedrooms | $4,590 |
| 4 Bedrooms | $5,140 |
| 5 Bedrooms | $5,962 |
| 6 Bedrooms | $6,677 |
| 7 Bedrooms | $7,211 |
| 8 Bedrooms | $7,572 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,930 | $526,804 | 0.56% | F |
| 2BR | $3,620 | $673,652 | 0.54% | F |
| 3BR | $4,590 | $1,338,309 | 0.34% | F |
| 4BR | $5,140 | $1,603,719 | 0.32% | F |
| 5BR | $5,962 | $1,812,530 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 90505, located in Torrance, CA, falls within the broader Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. The Federal Market Rent (FMR) for 90505 in fiscal year 2024 is set at $2930, which is lower than the market rent of $3,065. This indicates that while the government subsidy aims to cover a significant portion of rental costs, landlords may still see a slight gap between the FMR and what the market demands.
The median home value in 90505 stands at $1,427,739, placing it above average compared to typical ZIP codes within the metro area. This suggests that 90505 leans towards being a premium sub-market within the larger Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. However, the ZIP code also has a notable 44.2% renter share, indicating a substantial portion of the population rents their homes rather than owning them.
This combination of a high renter share and above-average home values can be advantageous for landlords participating in the Section 8 program. It implies that there is both demand and availability for rental properties, especially those that cater to renters who might benefit from federal housing assistance. While the FMR is lower than the market rent, the higher home values and significant renter population make 90505 an attractive location for investment.
To determine if 90505 represents a value pocket or a mid-tier neighborhood within the context of Section 8, we must consider the overall landscape of the metro area. Value pockets typically have lower home values and market rents but still attract a significant number of renters due to affordability. Mid-tier neighborhoods balance moderate home values and rental rates. Given the specific figures for 90505, it does not fit neatly into either category; instead, it stands out as a premium sub-market with a strong presence of renters.
The divergence in 90505—specifically, the high renter share alongside elevated home values—points to its potential as a sweet spot for Section 8 investments. Landlords can expect to receive a steady stream of qualified tenants through the program, despite the premium nature of the sub-market. This scenario benefits both landlords seeking stable income and renters looking for affordable housing options within a desirable area.
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.