Section 8 Fair Market Rent (FMR) for ZIP 90744 - 2027

Investment Score for ZIP 90744

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	$1,830
1 Bedroom	$2,040
2 Bedrooms	$2,520
3 Bedrooms	$3,200
4 Bedrooms	$3,580
5 Bedrooms	$4,153
6 Bedrooms	$4,651
7 Bedrooms	$5,023
8 Bedrooms	$5,274

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,040	$469,358	0.43%	F
2BR	$2,520	$605,099	0.42%	F
3BR	$3,200	$697,858	0.46%	F
4BR	$3,580	$756,115	0.47%	F
5BR	$4,153	$825,172	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90744 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90744 is set by HUD for 2026 and ranges from $1550 for a zero-bedroom unit to $3060 for a four-bedroom unit. However, the actual rental market in this area is significantly higher, especially for two-bedroom units which have a Zillow median price of $606,356. This represents a price-to-FMR ratio of 23.3x, indicating that actual rents are much higher than the FMR. For instance, a two-bedroom unit priced at $606,356 would be nearly 28 times the FMR of $2170. This discrepancy means that tenants using Section 8 vouchers face significant constraints. They can only afford units that do not exceed their voucher amount, which is typically the FMR plus a small percentage. In ZIP 90744, this makes it extremely challenging for voucher holders to find suitable housing, particularly for larger units like two-, three-, and four-bedroom apartments. The FMR for a two-bedroom unit is $2170, which is only 42.8% of the median household income of $60,847. This suggests that even without a voucher, many residents struggle to afford market-rate rents. #### Affordability & Renter Profile ZIP 90744 has a population of 52,800, with 64.2% of the households being renters. This high percentage indicates a strong demand for rental properties in the area. Additionally, the occupancy rate stands at 96.5%, suggesting that there is little vacancy and the market is quite tight. Given the median household income of $60,847 and the high rent-to-income ratio, it is clear that the majority of renters in this ZIP code are likely to be low- to moderate-income individuals who are highly dependent on affordable housing options. The affordability issue is compounded by the fact that the FMR for a two-bedroom unit is only 42.8% of the median income, meaning that a significant portion of the population’s income is dedicated to housing costs. This tight market dynamic implies that landlords have considerable leverage over pricing, making it difficult for low-income renters to find affordable housing. The high rent-to-income ratio also suggests that the market is oversupplied with expensive units and undersupplied with affordable ones. #### Investor Angle From an investor perspective, the ZIP code 90744 presents both opportunities and challenges. While the overall rental market is robust due to high demand and limited supply, the cash flow potential for Section 8-focused investments is constrained by the low FMR compared to market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments for rental properties. Assuming an average operating expense of 50% of the rental income and a mortgage payment of around 30% of the rental income, a two-bedroom unit rented at $2170 would generate approximately $1085 in net operating income (after deducting operating expenses). Deducting the mortgage payment of $651, the net cash flow would be $434 per month. This is a relatively modest cash flow given the high property values and the limited number of units that qualify for Section 8 vouchers. In terms of investment grade, ZIP 90744 would be considered a medium-risk investment. The high demand and occupancy rates provide stability, but the low FMR and the difficulty in finding qualified tenants could pose challenges. Investors should carefully evaluate the local market conditions and the specific requirements of Section 8 programs before committing to this ZIP code. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on developing or acquiring smaller units such as zero-bedroom and one-bedroom apartments. These units have lower FMRs ($1550 and $1740 respectively), making them more accessible for Section 8 voucher holders. Smaller units also tend to have higher occupancy rates and are easier to manage. 2. **Consider Location-Specific Strategies**: Since the market is tight and the FMR is significantly lower than market rates, investors might want to target areas within ZIP 90744 where there is a higher concentration of low-income residents. This could involve analyzing census tracts or neighborhood data to identify pockets with lower median incomes and higher renter populations. 3. **Explore Alternative Financing Options**: Given the high property values and the limited cash flow potential at FMR, investors might need to explore alternative financing options such as low-interest loans, grants, or partnerships with government agencies to reduce the financial burden. This could help in achieving a better balance between the high purchase cost and the lower rental income. #### Bottom Line For Section 8-focused investors, ZIP 90744 presents a challenging environment due to the high price-to-FMR ratio and the tight market conditions. While there is a strong demand for rental properties, the limited number of units that qualify for Section 8 vouchers and the low cash flow potential make this ZIP code less attractive for such investments. Therefore, the recommendation is to **Skip** this ZIP code unless investors can find ways to mitigate the financial risks through strategic location selection or alternative financing methods. The high rent-to-income ratio and the significant gap between FMR and market rates suggest that the primary challenge will be finding tenants who can afford the rent while still qualifying for Section 8 vouchers. This makes the ZIP code less viable for investors looking to rely solely on Section 8 vouchers for their rental income.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.