Section 8 Fair Market Rent (FMR) for ZIP 90723 - 2027

Investment Score for ZIP 90723

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,010
1 Bedroom	$2,240
2 Bedrooms	$2,770
3 Bedrooms	$3,510
4 Bedrooms	$3,930
5 Bedrooms	$4,559
6 Bedrooms	$5,106
7 Bedrooms	$5,514
8 Bedrooms	$5,790

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,240	$389,307	0.58%	F
2BR	$2,770	$555,608	0.5%	F
3BR	$3,510	$692,409	0.51%	F
4BR	$3,930	$788,750	0.5%	F
5BR	$4,559	$871,946	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90723 (Paramount, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90723, as of 2026, is set at $2350 for a two-bedroom unit. This amount represents 37.5% of the median household income in Paramount, which stands at $75,250. However, the actual rental market in Paramount is significantly higher, with a Zillow median price for a two-bedroom unit at $556,607. The price-to-FMR ratio of 19.7x indicates that the actual rent prices are nearly 20 times the FMR, which creates a significant constraint for Section 8 voucher holders. Given that the median rent for a two-bedroom unit far exceeds the FMR, landlords who accept Section 8 vouchers may find it challenging to compete with market rates, potentially limiting their pool of tenants to those who can afford the difference between the voucher amount and the actual rent. #### Affordability & Renter Profile With 57.0% of the population renting, Paramount has a substantial number of residents who rely on rental housing. The occupancy rate of 99.0% suggests that the rental market is very tight, with almost all available units occupied. This high demand for rentals, coupled with the steep price-to-FMR ratio, implies that the market is undersupplied relative to what is affordable for many renters. The median household income of $75,250 is relatively modest, and with 37.5% of this income allocated to a two-bedroom unit, renters are likely facing significant financial pressure. The high rent prices relative to income indicate that the market is not particularly affordable for most renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 90723 presents a mixed picture. While the high occupancy rate suggests strong demand, the disparity between the FMR and actual market rents poses challenges. For instance, a two-bedroom unit with a Zillow median price of $556,607 would have a monthly mortgage payment of approximately $2,500 assuming a 30-year fixed-rate mortgage at 5%. This is already above the FMR of $2350, indicating that cash flow would be negative if the property were rented solely based on the FMR. Additionally, the high price-to-FMR ratio of 19.7x suggests that the market is overpriced compared to what is considered fair by HUD standards. Given these factors, the investment grade for properties in ZIP 90723 is moderate to low for Section 8-focused investors. The primary challenge lies in finding tenants willing to pay the difference between the voucher amount and the actual rent, which could be substantial. Moreover, the limited number of units that fall within the FMR range makes it difficult for investors to target the Section 8 market effectively. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For example, a one-bedroom unit with a Zillow median price of around $450,000 would have a monthly mortgage payment of approximately $2,000. This is still slightly above the FMR of $1880, but the gap is smaller, making it easier to attract Section 8 tenants who might be willing to cover the additional cost. 2. **Consider Renovation Projects**: Investing in lower-priced, older properties that require renovation can be a viable strategy. By renovating these properties, investors can increase their value while keeping them within the FMR range. For instance, a property that can be renovated for $100,000 and sold for $350,000 would have a monthly mortgage payment of about $1,600, well below the FMR for a two-bedroom unit. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90723 is to **Skip**. The high price-to-FMR ratio and the limited number of units that fall within the FMR range make it challenging to achieve positive cash flow. Additionally, the tight rental market and high demand for units suggest that competition for tenants will be fierce, further complicating efforts to secure Section 8 voucher holders. Investors looking to enter this market should consider other ZIP codes with better alignment between FMR and actual rents, or they should explore alternative investment strategies that do not rely heavily on Section 8 vouchers.

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.