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 | $2,000 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,760 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,240 | $415,197 | 0.54% | F |
| 2BR | $2,760 | $550,014 | 0.5% | F |
| 3BR | $3,500 | $700,809 | 0.5% | F |
| 4BR | $3,920 | $827,423 | 0.47% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 90716, which encompasses Hawaiian Gardens, CA, within the Los Angeles-Long Beach-Glendale HUD Metro FMR Area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $2460 for fiscal year 2024 contrasts sharply with the actual market rent of $1696, according to Census ACS data. This discrepancy suggests that landlords may struggle to charge rents that meet or exceed the FMR, potentially leading to financial strain.
Regarding property acquisition, the median home value stands at $640,410. However, without specific data on days on market (DOM) and the percentage of homes needing price cuts to sell, it's challenging to determine if acquiring properties in this area is financially prudent. The lack of these metrics indicates that while the median home value is high, there might be unknown risks related to the ease and cost-effectiveness of property purchases.
Tenant demand in ZIP 90716 is strong, with a total population of 13,599 and a significant 57.1% of residents renting their homes. This high percentage of renters suggests a robust pool of potential tenants, reducing the risk of vacancy and ensuring steady rental income once a property is occupied.
In summary, while there is substantial tenant demand in Hawaiian Gardens, CA, the rent math does not currently support charging FMR levels, which could impact profitability. Furthermore, the high median home value makes acquisitions expensive, and without detailed information on DOM and price-cut shares, the affordability of purchasing properties remains uncertain. Landlords and small-portfolio investors should proceed with caution, carefully considering these factors before investing in this market.
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.