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 | $2,010 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,240 | $557,176 | 0.4% | F |
| 2BR | $2,770 | $690,627 | 0.4% | F |
| 3BR | $3,510 | $865,995 | 0.41% | F |
| 4BR | $3,930 | $994,952 | 0.39% | F |
| 5BR | $4,559 | $1,131,193 | 0.4% | F |
U.S. Census Bureau data (2024)
Located in the Harbor region of Los Angeles, the 90731 ZIP code encompasses San Pedro, a community defined by its deep-water port and distinct maritime character. The area features a mix of historic hillside homes and waterfront properties, anchored economically by the Port of Los Angeles, which serves as a critical hub for international trade and local employment. Beyond the industrial landscape, the neighborhood is known for attractions like the USS Iowa museum and a revitalized downtown waterfront district that offers dining and cultural amenities, creating a unique coastal living environment within the sprawling city.
From a financial perspective, the math for Section 8 investors in this area is tight but manageable. The FY2024 HUD SAFMR for a 2-bedroom unit is set at $2,380, which lags slightly behind the current market rent of $2,496, resulting in a negative gap of $116. For those expanding to a full portfolio, the FY2026 FMR ladder offers $1,920 for a 1-bedroom and climbs to $3,030 for a 3-bedroom. Median home values sit at $821,698, while the median sale price for a 2-bedroom specifically is $689,765. With properties taking a median of 52 days to sell, the market shows moderate turnover rather than frantic bidding wars.
Demand drivers are robust here, supported by a renter share of 67.4% and a median household income of $76,395, indicating a tenant base that may rely on housing vouchers to bridge the gap between local wages and rising costs. Families are drawn to the area by highly rated public schools such as the San Pedro Science, Technology, Engineering, Arts, and Math (STEAM) Magnet, adding significant value for long-term tenants. Additionally, the extensive Metro bus lines and the Silver Line rapid transit route provide essential connectivity to downtown Los Angeles and Long Beach, widening the net of potential renters who work outside the immediate harbor area.
The strongest investor angle in 90731 is stability. While the immediate cash flow on a 2-bedroom unit is slightly challenged by the market rent exceeding the voucher amount, the high renter share and institutional amenities like the STEAM Magnet school suggest a steady pool of applicants seeking long-term housing. Investors should focus on acquiring properties near the school corridors or transit lines to maximize desirability, accepting a modest initial rent gap in exchange for low vacancy risk in a market where median home values remain above $800,000.
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.