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 | $2,950 |
| 1 Bedroom | $3,290 |
| 2 Bedrooms | $4,060 |
| 3 Bedrooms | $5,150 |
| 4 Bedrooms | $5,760 |
| 5 Bedrooms | $6,682 |
| 6 Bedrooms | $7,484 |
| 7 Bedrooms | $8,083 |
| 8 Bedrooms | $8,487 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,060 | $816,149 | 0.5% | F |
| 3BR | $5,150 | $906,001 | 0.57% | F |
| 4BR | $5,760 | $988,886 | 0.58% | F |
| 5BR | $6,682 | $1,117,078 | 0.6% | F |
U.S. Census Bureau data (2024)
3390 is the Fair Market Rent (FMR) for ZIP 90713 in fiscal year 2024, indicating the maximum amount a Section 8 participant can be charged for a two-bedroom unit. In contrast, the market rent, measured by ZORI, stands at 3825, suggesting landlords could potentially charge a higher rate outside of Section 8. The median home value in Lakewood, CA, is 908272, which is significantly higher than the median income of 133419, highlighting the affordability gap for residents. With only 14.6% of the population being renters, the competition for rental properties is relatively low, allowing landlords to maintain higher standards and selectivity in their tenants. The price-cut share of 0.2% shows that very few listings require a reduction in asking price, implying a strong local real estate market. Given these numbers, it's clear that while the median income does not align well with the high median home value, the rental market remains favorable for landlords who can manage properties efficiently. The low percentage of renters and the minimal need for price adjustments suggest stability and demand for quality rentals. Therefore, for landlords and small-portfolio investors, participating in the Section 8 program with an FMR of 3390 can provide a reliable and consistent income stream, though it will be slightly below market rates. Section 8 verdict: Average opportunity.
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.