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 | $2,150 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,960 | $711,980 | 0.42% | F |
| 3BR | $3,760 | $773,499 | 0.49% | F |
| 4BR | $4,200 | $811,227 | 0.52% | F |
| 5BR | $4,872 | $883,766 | 0.55% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 90606, located in Whittier, CA, are significant and must be carefully considered. First, tenant turnover is a critical issue. The market rent for the area stands at $2,843, while the Fair Market Rent (FMR) for fiscal year 2024 is set at $2,550. This discrepancy can lead to frequent changes in occupancy, as tenants who receive vouchers might prefer properties that offer them the most financial benefit. High turnover rates can result in increased costs associated with finding new tenants, including advertising expenses and the time required to prepare the property for new occupants.
Vacancy exposure is another concern. With an average Days on Market (DOM) being unavailable due to limited data, it's difficult to predict how long a unit might remain vacant between tenancies. A prolonged vacancy period can significantly impact cash flow, especially when combined with the costs of maintaining and managing a property. Furthermore, the typical home value in the area is $775,589, which contrasts sharply with the median income of $100,428. This gap suggests that many homeowners may be financially stretched, potentially leading to deferred maintenance issues. Landlords must be prepared to address these maintenance concerns promptly to ensure compliance with housing standards and maintain a safe living environment for their tenants.
However, these risks are mitigated by the high renter share in the area, which is 28.1%. Such a high percentage of renters typically translates into a robust demand for rental properties, particularly those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and reduce the likelihood of extended vacancies. Additionally, the strong presence of voucher holders in the community ensures a steady stream of qualified tenants who are committed to paying their rent through the voucher program.
In conclusion, the investment in Section 8 properties in ZIP 90606 presents a moderate risk for a first-time landlord. While challenges such as tenant turnover and deferred maintenance exist, the high renter share provides a solid foundation for maintaining occupancy and ensuring a stable income stream.
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.