Section 8 Fair Market Rent (FMR) for ZIP 90703 - 2027

Investment Score for ZIP 90703

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,230
1 Bedroom	$3,610
2 Bedrooms	$4,450
3 Bedrooms	$5,650
4 Bedrooms	$6,320
5 Bedrooms	$7,331
6 Bedrooms	$8,211
7 Bedrooms	$8,868
8 Bedrooms	$9,311

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,610	$230,747	1.56%	A+
2BR	$4,450	$538,680	0.83%	C
3BR	$5,650	$998,335	0.57%	F
4BR	$6,320	$1,170,222	0.54%	F
5BR	$7,331	$1,347,863	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90703 (Cerritos, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 90703 in 2026 indicate that a 2-bedroom unit is priced at $3,900. However, the actual rent for such units is likely higher due to the high price-to-FMR ratio observed in the market. The Zillow median price for a 2-bedroom home in Cerritos is $542,118, which translates to a price-to-FMR ratio of 11.6x. This suggests that the actual rental rates in the area are significantly above the FMR, making it challenging for Section 8 voucher holders to find affordable housing options. For instance, a 2-bedroom unit might cost around $45,000 annually based on the Zillow median price, while the FMR only covers $3,900 per month. Therefore, voucher holders would need to find properties where landlords are willing to accept the lower FMR rate, which could be difficult given the local market dynamics. #### Affordability & Renter Profile Cerritos has a median household income of $134,987, which places it among the higher-income areas in Los Angeles County. With 24.4% of residents being renters, the market is relatively tight, especially considering the occupancy rate of 98.3%. This indicates that there is little vacancy, and competition for rental units is fierce. Given the high median income and the significant gap between FMR and actual rental prices, it is likely that most renters in this area are not reliant on government assistance programs like Section 8. Instead, they are probably individuals or families who can afford market-rate rents. The affordability issue is further exacerbated by the high price-to-FMR ratio, suggesting that even modestly priced rentals are out of reach for many low-income households. #### Investor Angle From an investor perspective, the ZIP code 90703 presents a mixed picture when considering cash flow and investment grade. While the median income is high, indicating a strong economic base, the high price-to-FMR ratio means that properties rented at FMR levels will generate less cash flow compared to market-rate rentals. To illustrate, if a 2-bedroom unit is rented at the FMR of $3,900 per month, the annual rental income would be $46,800. However, if the same unit were rented at market rates, it could potentially command a much higher monthly rent, say $4,500, leading to an annual rental income of $54,000. This difference highlights the financial trade-off for investors who choose to participate in the Section 8 program. Moreover, the investment grade of properties in this ZIP code would depend on factors such as property condition, location, and demand. Given the tight market and high occupancy rates, well-maintained properties in desirable locations are likely to perform better. However, the limited pool of potential tenants who qualify for Section 8 vouchers could make it harder to fill vacancies, especially if the property is not located in a highly sought-after area. #### Specific Actionable Insights 1. **Focus on Property Location and Condition**: Investors should prioritize properties in prime locations with good maintenance, as these are more likely to attract tenants willing to pay market rates. For Section 8-focused investments, ensure the property meets all necessary standards to qualify for the program, including safety and habitability requirements. 2. **Consider Diversifying Rental Portfolio**: Given the high price-to-FMR ratio, it might be prudent for investors to diversify their rental portfolio to include both Section 8 and market-rate properties. This strategy can help balance the lower cash flow from Section 8 units with higher returns from market-rate rentals. 3. **Engage with Local Landlords and Tenants**: Networking with other landlords and tenants in the area can provide valuable insights into the local rental market. Understanding the preferences and challenges faced by both parties can help in setting competitive rental rates and attracting suitable tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90703 is to **Skip**. The high price-to-FMR ratio and limited number of potential voucher holders make it challenging to achieve positive cash flow. Additionally, the tight market conditions and high occupancy rates suggest that finding and retaining tenants who qualify for Section 8 vouchers could be difficult. Investors looking to maximize returns in this ZIP code should consider focusing on market-rate rentals instead.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.