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 | $2,840 |
| 1 Bedroom | $3,180 |
| 2 Bedrooms | $3,920 |
| 3 Bedrooms | $4,970 |
| 4 Bedrooms | $5,570 |
| 5 Bedrooms | $6,461 |
| 6 Bedrooms | $7,236 |
| 7 Bedrooms | $7,815 |
| 8 Bedrooms | $8,206 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,180 | $558,610 | 0.57% | F |
| 2BR | $3,920 | $1,009,751 | 0.39% | F |
| 3BR | $4,970 | $1,521,946 | 0.33% | F |
| 4BR | $5,570 | $1,915,420 | 0.29% | F |
| 5BR | $6,461 | $2,475,363 | 0.26% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for properties located in ZIP code 90803, which encompasses parts of Long Beach, CA, is centered around the significant disparity between the Fair Market Rent (FMR) set by HUD and the actual market rents. For fiscal year 2024, the FMR in ZIP 90803 is established at $3260, while the Zillow Observed Rent Index (ZORI) indicates that the average market rent is $2,558. This means that the FMR exceeds the market rent by $702, representing a 27.4% premium.
This gap makes voucher tenants a lucrative option for landlords and small-portfolio investors. With 55.9% of residents being renters, the demand for affordable housing is high. The median home value in the area stands at $1,326,765, and the median income is $114,656, indicating that many residents struggle to find housing within their budget. As a result, properties participating in the Section 8 program can expect a steady stream of tenants who are guaranteed to pay the rent based on the FMR rate.
The premium associated with voucher tenants translates directly into higher yields for property owners. By renting to voucher holders, landlords can capitalize on the government's willingness to pay above market rates, thereby increasing their rental income and overall investment returns. In an environment where the majority of residents are renters and the cost of living is high, the Section 8 program provides a reliable mechanism to ensure that rental payments are made on time and in full.
In conclusion, the $702 premium, or 27.4%, that the FMR offers over the market rent in ZIP 90803 makes it an attractive proposition for landlords looking to maximize their yields. Given the local context of high median home values and a substantial portion of the population租房，Section 8项目为房东提供了一个可靠的方式来确保租金按时全额支付。在这个地区，租户比例高且生活成本高昂，参与Section 8计划的房产可以期待有一批稳定的租客。这些租客基于公平市场租金（FMR）费率支付租金，使房东能够从政府愿意支付高于市场价格的金额中获益，从而增加他们的租金收入和整体投资回报。 综上所述，ZIP代码90803的公平市场租金（FMR）比市场价格高出702美元，即27.4%，这对寻求最大化收益的房东来说是一个有吸引力的选择。鉴于当地较高的中位房价和大量租房人口，Section 8项目为房东提供了一种确保租金稳定流入的方式。
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.