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 | $2,080 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,320 | $454,786 | 0.51% | F |
| 2BR | $2,860 | $687,072 | 0.42% | F |
| 3BR | $3,630 | $861,146 | 0.42% | F |
| 4BR | $4,060 | $1,006,391 | 0.4% | F |
| 5BR | $4,710 | $1,191,096 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 90601, located in Whittier, California, presents an interesting scenario when analyzed from the perspective of renters. The median income in this area stands at $104,052, which places it above the national average. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,389 per month. This figure is critical in understanding the financial strain on households.
To assess affordability, we must consider the voucher payment standard, which is based on the Fair Market Rent (FMR) of $2,350 for the fiscal year 2024. The difference between the ZORI and the FMR is minimal, indicating that even with a housing voucher, tenants will still face significant rent costs relative to their income. A household earning the median income would dedicate approximately 27% of their gross monthly income towards rent if paying the ZORI rate, which aligns closely with the general guideline that rent should not exceed 30% of income.
With 38.0% of the population being renters and a total population of 30,078, there is a notable segment of the community seeking rental properties. This creates a competitive environment for landlords, as they vie for tenants who can afford the high rents or those who might benefit from housing vouchers. The affordability gap suggests that while some renters can manage market rates, others may require assistance through vouchers to secure housing.
The takeaway for landlords considering their strategy in ZIP 90601 is clear: accepting Section 8 vouchers can be a viable option to attract tenants in a competitive market. Although voucher payments are slightly below the market rate, they ensure a steady stream of income and reduce the risk of vacancy. Landlords should weigh the benefits of guaranteed rent against the administrative requirements of participating in the voucher program. For those who prefer cash-paying tenants, maintaining competitive pricing within the market rate will be crucial to attracting and retaining residents in this economically diverse area.
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.