Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,240 |
| 1 Bedroom | $2,500 |
| 2 Bedrooms | $3,090 |
| 3 Bedrooms | $3,920 |
| 4 Bedrooms | $4,390 |
| 5 Bedrooms | $5,092 |
| 6 Bedrooms | $5,703 |
| 7 Bedrooms | $6,159 |
| 8 Bedrooms | $6,467 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,500 | $711,625 | 0.35% | F |
| 2BR | $3,090 | $856,702 | 0.36% | F |
| 3BR | $3,920 | $1,046,810 | 0.37% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 90704 in Avalon, CA, must be carefully considered. Firstly, tenant turnover could be an issue due to the significant disparity between the market rent of $2,006 and the Fair Market Rent (FMR) of $2,630 for fiscal year 2024. This gap suggests that tenants might struggle to afford the higher FMR, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another concern, as the number of days on the market (DOM) is currently unavailable. However, with a typical home value of $915,314 and a median income of $105,139, there is a notable mismatch between property values and residents' financial capabilities. This could result in deferred maintenance issues, as lower-income tenants may not have the funds to address property upkeep, leaving landlords responsible for these costs.
Despite these challenges, the high renter share of 48.6% in Avalon indicates strong demand for rental properties, including those utilizing Section 8 vouchers. A dense population of renters typically translates into a robust pool of voucher holders seeking housing, which can help stabilize occupancy rates and provide a steady stream of rental income.
In conclusion, the risks associated with Section 8 investments in ZIP code 90704 are moderate, considering the high renter density and potential for stable voucher-based tenancy despite the financial and maintenance challenges.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.