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 | $2,130 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,160 |
| 5 Bedrooms | $4,826 |
| 6 Bedrooms | $5,405 |
| 7 Bedrooms | $5,837 |
| 8 Bedrooms | $6,129 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,370 | $564,274 | 0.42% | F |
| 2BR | $2,930 | $708,700 | 0.41% | F |
| 3BR | $3,720 | $904,021 | 0.41% | F |
| 4BR | $4,160 | $1,161,597 | 0.36% | F |
| 5BR | $4,826 | $1,253,483 | 0.39% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 90717 in Lomita, CA, are significant. First, consider the disparity between the market rent of $2,944 and the Fair Market Rent (FMR) of $2,430 for FY 2024. This difference suggests that landlords may face frequent tenant turnover, as many Section 8 tenants can only afford the lower FMR rate. High turnover rates can be costly due to the need for constant maintenance and the time required to secure new tenants.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant between tenants. In a competitive rental market, this uncertainty can lead to extended periods without rental income, increasing financial pressure on landlords.
Deferred maintenance is also a risk factor. With a typical home value of $920,925 and a median income of $94,241, landlords must ensure they have sufficient funds to cover necessary repairs and upgrades. Section 8 tenants often require landlords to maintain a higher standard of living conditions, which can be challenging when the rental income does not fully cover the cost of upkeep.
However, these risks must be weighed against the high renter share of 55.2%. A large proportion of renters typically indicates a robust demand for housing, including those who rely on Section 8 vouchers. This demand can provide a steady stream of qualified tenants, reducing the likelihood of prolonged vacancies and ensuring consistent income.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 90717 is moderate.
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.