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 potential risks for investing in Section 8 housing in ZIP 90610, Beverly Hills, California, include significant tenant turnover if relying solely on market rents rather than the $2540 Fair Market Rent (FMR) set for fiscal year 2024. Landlords who do not adjust their rental rates to at least match the FMR may face frequent vacancies, impacting cash flow. The days on market (DOM) figure is unavailable, but a high-end area like Beverly Hills typically experiences quick leasing due to limited supply. However, this does not mitigate the risk associated with deferred maintenance costs. Properties in ZIP 90610 often require higher maintenance budgets due to their age and the expectation of quality living conditions by tenants.
The typical home value and median income figures are also unavailable, which makes it challenging to assess the financial capacity of residents to cover additional costs or damages beyond standard wear and tear. However, the high renter share in the area suggests a strong demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates, even if individual tenant tenures are short.
To summarize, while there are notable risks such as tenant turnover and deferred maintenance expenses, the high demand for rentals in ZIP 90610 supports a moderate risk level for a first-time Section 8 landlord.
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.