Section 8 Fair Market Rent (FMR) for ZIP 90632 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 90632 in Unknown, CA, reveals several potential issues that could impact landlords and small-portfolio investors. First, tenant turnover could be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $2780 set for FY 2024. The lack of data on market rent makes it difficult to predict how competitive the FMR will be, potentially leading to frequent tenant changes if the FMR is lower than what tenants are willing to pay.

Vacancy exposure is another concern, given the absence of data on the days on market (DOM). A higher DOM can indicate a longer time to fill vacancies, which directly impacts cash flow and profitability. Without specific figures, it's challenging to assess the likelihood of extended vacancy periods in this area.

Deferred maintenance exposure also poses a risk, particularly without knowing the typical home values and median incomes in ZIP 90632. These factors are crucial in determining whether homeowners have the financial capacity to maintain their properties adequately. If maintenance is neglected, it could lead to costly repairs and renovations for landlords who inherit these properties.

However, the high renter density in the area, indicated by the lack of data on the percentage of renters, typically suggests a robust demand for rental properties, including those accepting Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as there is likely a steady pool of potential tenants.

Verdict: Moderate risk 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.