Section 8 Fair Market Rent (FMR) for ZIP 90802 - 2027

Investment Score for ZIP 90802

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	$2,370
1 Bedroom	$2,640
2 Bedrooms	$3,260
3 Bedrooms	$4,140
4 Bedrooms	$4,630
5 Bedrooms	$5,371
6 Bedrooms	$6,016
7 Bedrooms	$6,497
8 Bedrooms	$6,822

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	$2,640	$396,322	0.67%	D
2BR	$3,260	$572,737	0.57%	F
3BR	$4,140	$990,907	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90802 (Long Beach, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90802 is set by HUD to reflect the average rent that voucher holders can afford. For 2026, the FMRs are as follows: - 0BR: $1980 - 1BR: $2210 - 2BR: $2760 - 3BR: $3500 - 4BR: $3900 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. The Zillow median price for a 2BR unit is $586,330, which translates to a monthly mortgage payment of approximately $2750, assuming a 30-year fixed-rate mortgage at 4.5%. This means that the actual rent for a 2BR unit would likely be around $2750, which is just above the FMR of $2760. Given that the occupancy rate is 89.1%, there is a high demand for rental units. The FMR for a 2BR unit is only 44.5% of the median household income ($74,510), indicating that voucher holders have limited options when it comes to finding affordable housing. The price-to-FMR ratio of 17.7x suggests that the actual cost of purchasing a property far exceeds the rent that can be charged under the Section 8 program, creating significant financial pressure on landlords who rely solely on vouchers. #### Affordability & Renter Profile ZIP code 90802 has a population of 40,434, with 79.0% being renters. This high percentage of renters indicates a strong demand for rental properties in the area. Given the median household income of $74,510, the majority of residents are middle-class families who may struggle to find affordable housing options. The median income is relatively low compared to the high cost of living in Long Beach, making it challenging for many residents to afford market-rate rents. The tight rental market, with an occupancy rate of 89.1%, suggests that there is little excess supply of rental units. This high occupancy rate implies that landlords have the upper hand in setting rents, and they may be reluctant to accept Section 8 vouchers due to the lower rent they receive compared to market rates. The FMR for a 2BR unit is $2760, while the actual median rent for a similar unit could be closer to $2750 based on the Zillow data. This narrow margin leaves little room for error or profit for landlords. #### Investor Angle From an investor perspective, the ZIP code 90802 presents a challenging environment for cash flow. The FMR for a 2BR unit is $2760, but the actual purchase price of a similar unit is $586,330. Assuming a 20% down payment and a 30-year fixed-rate mortgage at 4.5%, the monthly mortgage payment would be around $2750. This means that the rent collected under the Section 8 program would barely cover the mortgage payment, leaving little to no cash flow for the landlord. Moreover, the investment grade for this ZIP code is low due to the high price-to-FMR ratio. The ratio of 17.7x indicates that the actual purchase price of a property is much higher than what can be rented out under the Section 8 program. This makes it difficult for investors to justify the purchase of properties in this area if their primary goal is to generate cash flow through Section 8 rentals. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have lower FMRs ($1980 and $2210 respectively) and are more likely to be affordable for voucher holders. Additionally, these units may have lower purchase prices, potentially improving cash flow. 2. **Consider Non-Section 8 Tenants**: Due to the tight rental market and high occupancy rate, landlords might consider renting to non-Section 8 tenants who can afford higher market rates. While this strategy would exclude voucher holders, it could provide better cash flow and returns on investment. 3. **Explore Subsidies and Programs**: Investors should look into additional subsidies and programs that can help bridge the gap between FMR and market rates. For example, the Low-Income Housing Tax Credit (LIHTC) program can provide tax incentives for developers who build affordable housing units. This could make the investment more viable and improve cash flow. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors is to **skip** ZIP code 90802. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow. While there is a significant demand for rental properties, the financial constraints imposed by the Section 8 program do not align well with the high purchase costs of properties in this area. Investors looking to enter this market should carefully evaluate the potential for alternative subsidies or consider focusing on smaller units where the FMR is closer to the actual market rent.

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.