Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| 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 |
The analysis of the Section 8 cap rate for ZIP code 90609 in California is constrained by the lack of complete data. For a two-bedroom Fair Market Rent (FMR) under Section 8 for fiscal year 2024, the annualized amount is set at $2540. However, the market rent for the same type of property is listed as N/A, indicating that there's no readily available figure for comparison. Additionally, the median home value for the area is also not provided, making it challenging to calculate an accurate gross yield.
In the absence of market rent data, we cannot provide a direct comparison between the Section 8 FMR and the market rent to determine the gross yield. The implied gross yield based solely on the Section 8 FMR would be calculated as follows:
If we were to assume the median home value is known, the gross yield would be derived by dividing the annual Section 8 rental income by the median home value. Without the median home value, this calculation cannot be completed. However, let's consider the implications of using the Section 8 FMR as a basis for investment decisions.
The Section 8 FMR of $2540 annually suggests a lower bound for rental income in the area. This can be useful for setting expectations for the minimum return on investment if a property qualifies for the program. It's important to note that while the FMR provides a benchmark for subsidized housing, it does not necessarily reflect the potential market rents that could be achieved outside of the Section 8 program.
Given the N/A% renter density and the N/A-day Days on Market (DOM), it's impossible to determine how frequently properties are rented out or how long they typically remain vacant. These factors are crucial for understanding the liquidity and demand for rentals in the area. Therefore, the scenario based on Section 8 FMR is the only one that can be concretely discussed here.
To conclude, the rough Section 8 cap-rate picture for ZIP 90609 is limited due to incomplete data. The annual Section 8 FMR of $2540 provides a baseline for rental income, but without additional figures such as the median home value and market rent, a precise gross yield cannot be determined. Landlords and small-portfolio investors should consider this FMR as a conservative estimate and seek additional local market insights to make informed investment decisions.
Data Sources: FMR data from HUD (2027).
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.