Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,470 |
| 1 Bedroom | $2,760 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,310 |
| 4 Bedrooms | $4,830 |
| 5 Bedrooms | $5,603 |
| 6 Bedrooms | $6,275 |
| 7 Bedrooms | $6,777 |
| 8 Bedrooms | $7,116 |
U.S. Census Bureau data (2024)
ZIP 90715, located in Lakewood, CA, within the Los Angeles-Long Beach-Glendale HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code can be best categorized as a cash-flow anchor.
The Family Monthly Rent (FMR) for ZIP 90715 in fiscal year 2024 is set at $2840, which is significantly higher than the average market rent of $2,279. This creates a positive spread of $561 per unit, enhancing the financial stability of the portfolio. Landlords and small-portfolio investors can leverage this difference to ensure consistent and reliable cash flow from their properties.
A key factor supporting the cash-flow anchor classification is the median home value in ZIP 90715, which stands at $822,562. This high median home value suggests that the area is predominantly middle to upper-middle class, making it less susceptible to economic downturns and ensuring a steady demand for rental properties.
The low 0.2% price-cut share and N/A-day days on market (DOM) indicate that properties in this ZIP code do not typically require significant discounts or extended listing periods to secure tenants. This further solidifies the cash-flow anchor status, as it minimizes the risk of vacancies and reduces the need for aggressive marketing or price adjustments.
While the 51.6% renter share and median income of $91,875 might suggest potential for appreciation or diversification, the primary focus should remain on cash flow given the favorable FMR-to-market rent ratio. The high median income also supports the ability of residents to pay the higher FMR rates, thus ensuring a stable tenant pool.
In summary, ZIP 90715 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to its substantial positive spread between FMR and market rents, high median home values, and low risk of vacancy. These factors contribute to a robust and predictable income stream, which is essential for landlords and small-portfolio investors aiming to stabilize their overall investment performance.
Data Sources: FMR data from HUD (2027). 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.