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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,860 | $711,392 | 0.4% | F |
| 3BR | $3,630 | $785,101 | 0.46% | F |
| 4BR | $4,060 | $867,899 | 0.47% | F |
| 5BR | $4,710 | $1,367,316 | 0.34% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 90605 in Whittier, CA, are significant and must be carefully considered. Tenant turnover is a critical issue, with the market rent at $2,351 being notably lower than the Fair Market Rent (FMR) of $2,510 for fiscal year 2024. This gap suggests that landlords might face challenges in attracting tenants who can afford the higher FMR, leading to increased turnover rates.
Vacancy exposure is another concern. The Days on Market (DOM) for properties in this area is not available, which makes it difficult to predict how long it might take to fill vacancies. In a competitive rental market, extended vacancy periods can significantly impact cash flow and profitability.
Deferred maintenance is also a risk factor. With a typical home value of $794,439 and a median income of $99,635, there is a substantial disparity between property values and residents' ability to pay for upkeep. Landlords must be prepared to handle maintenance costs that might exceed the income generated by Section 8 vouchers.
However, these risks are offset by the high renter share in the area, which stands at 34.1%. High renter density typically translates into a greater demand for rental units, including those accepting Section 8 vouchers. This demand can help ensure a steady stream of qualified tenants willing to use their vouchers in the neighborhood.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.