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 economics of Section 8 housing in ZIP code 90651, located within the Los Angeles-Long Beach-Glendale County area, are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Housing and Urban Development). For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $2540. This figure represents the maximum amount that HUD will reimburse landlords for renting out their units under the Section 8 program.
To understand the actual payment structure, landlords must consider that the reimbursement is not solely based on the SAFMR. The total payment includes the tenant's portion of the rent and any utility allowances. Typically, tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a family in ZIP 90651, the tenant's contribution would be calculated as follows:
If a tenant's adjusted monthly income is $1000, they would pay 30% of that, which amounts to $300 towards the rent. The remaining $2240 ($2540 - $300) would be covered by the housing assistance payment from HUD. However, this calculation can vary depending on the specific income level of the tenant.
In addition to the rent, there are utility allowances that can affect the overall payment. These allowances are designed to cover the cost of utilities such as electricity, water, and gas. The exact amount of these allowances is not specified in the provided data, but they can range significantly. For simplicity, let’s assume a utility allowance of $200 per month. This means that the total reimbursement to the landlord could be $2740 ($2540 + $200).
However, it is important to note that the local market rent for ZIP 90651 is not available. This lack of data makes it difficult to compare the SAFMR rate with the actual market conditions, but it does not change the fact that the SAFMR rate is set specifically for this ZIP code.
The reimbursement gap or surplus for a two-bedroom apartment in ZIP 90651 depends on the actual market rent. Since the market rent is not provided, we cannot determine if there is a gap or surplus. But based on the SAFMR of $2540, landlords should expect to receive this amount or less, depending on the tenant's income and utility usage. If the market rent exceeds $2540, landlords may face a gap where they do not receive the full market value for their property. Conversely, if the market rent is below $2540, landlords may benefit from a surplus, receiving more than they would in a non-assisted rental situation.
To summarize, landlords in ZIP 90651 participating in the Section 8 program can expect a maximum reimbursement of $2540 for a two-bedroom unit, with adjustments based on the tenant's income and utility allowances. The final reimbursement will be the sum of the tenant's contribution and the utility allowance, up to the SAFMR limit. The presence of a reimbursement gap or surplus will depend on the actual market rent, which is currently unavailable.
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.