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 | $1,910 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,130 | $476,215 | 0.45% | F |
| 2BR | $2,630 | $658,424 | 0.4% | F |
| 3BR | $3,340 | $738,006 | 0.45% | F |
| 4BR | $3,730 | $794,067 | 0.47% | F |
| 5BR | $4,327 | $874,503 | 0.49% | F |
U.S. Census Bureau data (2024)
Long Beach ZIP code 90805 offers investors a classic working-class suburban environment defined by single-family homes and mid-century duplexes. The neighborhood is primarily residential with a strong focus on local services and community infrastructure. A key institutional presence here is the Long Beach City College Pacific Coast Campus, which serves as a major educational hub and draws consistent foot traffic to the area. This institutional anchor helps stabilize the local economy and provides a steady stream of potential student and faculty renters looking for nearby housing options.
From a numerical standpoint, the cash flow mechanics require precise calculation. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2026 is set at $2,290, while the current market rent sits at $2,079, resulting in a premium gap of $211 in favor of voucher holders. For those targeting larger assets, a 4-bedroom unit commands a $3,230 voucher. The asset price point is accessible, with a median home value of $714,530 and a specific median 2BR sale price of $660,229. However, turnover risk is present; the median days on market is 48 days, indicating a somewhat liquid but not instant sales environment.
The tenant pool is robust, driven by a 57.9% renter share and a median household income of $73,415. This income level is sufficient to support the rent rates but also suggests a population that may benefit from rental assistance programs to afford larger homes or manage cost-of-living increases. Families are drawn to the area for its access to local amenities and the presence of the Long Beach Unified School District, which operates several campuses in the vicinity. Additionally, the neighborhood's proximity to the 710 Freeway facilitates commutes to the larger Los Angeles and Orange County employment centers, sustaining demand.
The Section 8 verdict for 90805 is a moderate buy, primarily targeting stability and risk mitigation. The strongest angle is the guaranteed income premium; the $211 difference between the 2BR FMR and market rent allows investors to exceed typical local yields while minimizing vacancy loss. While the 48-day DOM suggests sales are not rapid, the combination of a high renter population and reliable voucher payments makes this a solid hold for long-term cash flow rather than a quick appreciation play.
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.