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 | $2,160 |
| 1 Bedroom | $2,410 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,220 |
| 5 Bedrooms | $4,895 |
| 6 Bedrooms | $5,482 |
| 7 Bedrooms | $5,921 |
| 8 Bedrooms | $6,217 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,410 | $433,975 | 0.56% | F |
| 2BR | $2,970 | $602,636 | 0.49% | F |
| 3BR | $3,770 | $861,603 | 0.44% | F |
| 4BR | $4,220 | $1,058,069 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 90804 in Long Beach, CA, presents an interesting scenario for both renters and landlords. The median income here stands at $71,614, while the market rate for rent is pegged at $2,167 per month, known as the ZORI (Zillow Observed Rent Index). This means that a significant portion of the population might struggle to cover the cost of housing without financial assistance.
To put this into perspective, let's consider the Federal Market Rent (FMR) for this zip code in fiscal year 2024, which is set at $2,320. This figure represents the maximum amount that Section 8 vouchers will cover for rent and utilities. Comparatively, the ZORI is slightly lower at $2,167, indicating that the market rate is just below the voucher payment standard. However, for a household earning the median income, paying $2,167 monthly would consume a substantial part of their earnings, especially considering other living expenses.
The area has a high concentration of renters, with 78.1% of the 38,076 population renting their homes. This high percentage suggests strong competition among landlords to secure tenants willing to pay the market rate. Given the tight budget constraints faced by many households, the affordability gap becomes a critical issue for landlords. They must weigh the benefits of accepting cash-paying tenants who might offer higher rents against the stability and guaranteed payments from voucher holders.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic move to ensure a steady stream of rental income and avoid vacancy. While the voucher payment is slightly above the market rate, it provides security in an environment where many potential tenants might find the $2,167 market rate challenging to meet on a regular basis. Landlords should consider the overall demand for rentals and the financial realities of the local population when deciding between voucher and cash-pay strategies.
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.