Section 8 Fair Market Rent (FMR) for ZIP 90806 - 2027

Investment Score for ZIP 90806

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	$1,860
1 Bedroom	$2,070
2 Bedrooms	$2,560
3 Bedrooms	$3,250
4 Bedrooms	$3,630
5 Bedrooms	$4,211
6 Bedrooms	$4,716
7 Bedrooms	$5,093
8 Bedrooms	$5,348

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	$2,070	$497,666	0.42%	F
2BR	$2,560	$708,628	0.36%	F
3BR	$3,250	$810,261	0.4%	F
4BR	$3,630	$873,718	0.42%	F
5BR	$4,211	$953,074	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90806 (Long Beach, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90806 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1580 - 1BR: $1770 - 2BR: $2210 - 3BR: $2800 - 4BR: $3120 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, comparing these FMRs to actual rental rates in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR property in 90806 is $706,463. Given that the FMR for a 2BR unit is only $2210, the price-to-FMR ratio is 26.6x. This means that the actual cost of housing far exceeds what the vouchers can cover, creating a substantial constraint for voucher holders. They would likely need to find properties well below the median price or negotiate with landlords who accept lower rent payments. #### Affordability & Renter Profile ZIP code 90806 has a population of 41,664, with 63.1% of residents being renters. This high percentage indicates a strong demand for rental properties in the area. The occupancy rate of 94.2% suggests that the market is relatively tight, with few vacant units available. The median household income in 90806 is $79,208, which provides context for the affordability of housing. Notably, the FMR for a 2BR unit is approximately 33.5% of the median income, indicating that it is still a challenging market for low-income households, even those receiving Section 8 assistance. Given the high renter percentage and tight occupancy rate, the market is likely competitive for both tenants and landlords. The high price-to-FMR ratio also implies that many properties are priced out of reach for typical Section 8 voucher holders, making it difficult for them to secure housing without additional subsidies or support. #### Investor Angle From an investor perspective, the key question is whether the FMRs provide sufficient cash flow to make investing in this ZIP code worthwhile. The FMR for a 2BR unit is $2210, while the Zillow median price for such a unit is $706,463. Assuming a standard mortgage rate and property management costs, the potential cash flow would be negative unless the property is significantly below the median price or the investor can secure higher rents through alternative means. To illustrate, let’s assume a conservative mortgage rate of 5%. The monthly mortgage payment on a $706,463 property would be approximately $3,300, based on a 30-year fixed-rate mortgage. Adding property management fees, maintenance costs, and other expenses, the total monthly cost could easily exceed $3,500. Even if the property were rented at the FMR of $2210, there would be a significant shortfall, making it financially unviable for most investors. The investment grade for this ZIP code would be considered low due to the high price-to-FMR ratio and the limited number of properties that fall within the affordable range for Section 8 voucher holders. Investors looking to capitalize on the rental market in 90806 should carefully consider the financial feasibility of their investments. #### Specific Actionable Insights 1. **Target Lower Priced Properties**: Investors should focus on acquiring properties that are priced significantly below the median. For example, a 2BR property priced at around $300,000 would have a monthly mortgage payment of approximately $1,500, leaving room for positive cash flow when rented at the FMR of $2210. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, landlords who are willing to accept lower rents may be more successful in attracting tenants. Investors could consider offering incentives to landlords to reduce their rental expectations, such as offering to manage the property or providing upfront renovations. 3. **Explore Alternative Subsidies**: Since the FMR alone is insufficient to cover the cost of many properties, investors might look into combining Section 8 vouchers with other local or state housing subsidies. This could help bridge the gap between the FMR and the actual rental rates. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP code 90806 is to **skip** this market. The high price-to-FMR ratio and limited availability of affordable properties make it challenging to achieve positive cash flow. While there is a strong demand for rentals, the financial constraints imposed by the FMR suggest that this ZIP code is not a favorable investment opportunity for those relying solely on Section 8 vouchers. However, investors who can identify and acquire properties well below the median price or who are willing to explore alternative subsidies might find some opportunities. Otherwise, the tight market and high costs indicate that this area is best left to other types of investments or strategies that do not rely heavily on government-assisted housing programs.

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.