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 | $2,100 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,670 |
| 4 Bedrooms | $4,100 |
| 5 Bedrooms | $4,756 |
| 6 Bedrooms | $5,327 |
| 7 Bedrooms | $5,753 |
| 8 Bedrooms | $6,041 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,340 | $427,480 | 0.55% | F |
| 2BR | $2,890 | $586,392 | 0.49% | F |
| 3BR | $3,670 | $863,053 | 0.43% | F |
| 4BR | $4,100 | $1,285,175 | 0.32% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 90755 in Signal Hill, CA, reveals several potential issues that could impact Section 8 landlords. First, tenant turnover could be problematic due to the gap between the market rent of $2,774 and the Fair Market Rent (FMR) set at $2,480 for FY 2024. This discrepancy suggests that tenants might struggle to afford the higher market rates, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another concern. The Days on Market (DOM) data is not available, which makes it difficult to predict how long properties might remain vacant. In a competitive rental market, vacancies can significantly reduce income and increase financial strain on landlords.
Deferred maintenance is also a risk, especially considering the typical home value of $709,372 and the median income of $113,512. These figures indicate that homeownership is relatively expensive compared to income levels, which may lead to a higher proportion of renters who rely on assistance programs such as Section 8 vouchers. Landlords should prepare for potential maintenance costs, as tenants receiving subsidies might not have the means to address property upkeep.
Despite these challenges, the high renter share of 49.5% in Signal Hill presents a significant opportunity. High renter density often correlates with higher demand for rental properties, including those that accept Section 8 vouchers. This strong rental market can mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 90755 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.