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 | $1,790 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,130 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,000 | $535,221 | 0.37% | F |
| 2BR | $2,470 | $646,171 | 0.38% | F |
| 3BR | $3,130 | $726,450 | 0.43% | F |
| 4BR | $3,510 | $778,077 | 0.45% | F |
| 5BR | $4,072 | $851,516 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP 90810, Long Beach, CA, might raise several concerns. Let's address these objections with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2000 (for zip FY 2024) cover the mortgage on a $712,492 home?
The FMR of $2000 in ZIP 90810 is designed to reflect the average rent for a moderate-quality rental unit in the area. However, the FMR does not directly correlate with the mortgage payment on a property valued at $712,492. The mortgage payment depends on factors such as the interest rate, loan term, and down payment amount. If we assume a typical 30-year fixed-rate mortgage with a 4% interest rate and a 20% down payment, the monthly principal and interest payment would be approximately $2,650. This means that the FMR alone would not cover the mortgage payment, leaving a shortfall of around $650 per month. Investors should consider additional sources of income or the potential for rent increases outside of Section 8 limits.
Objection 2: Is there enough renter demand at 40.1%?
The rental demand at 40.1% indicates that a significant portion of the housing stock is rented out. This suggests a steady demand for rental units in ZIP 90810. However, it is important to note that the percentage does not provide insight into the specific demand for Section 8 rental units. To accurately gauge the demand for Section 8 properties, an investor would need to look at the local Section 8 waitlist lengths and the number of active participants in the program. While the data does not specify the exact number of Section 8 tenants in the area, the general rental demand can be seen as positive for overall occupancy rates.
Objection 3: Will vouchers keep pace with $2,275 market rents?
The current market rent in ZIP 90810 is $2,275, which is higher than the FMR of $2000. Historically, voucher amounts have increased to match inflation and rising market rents, but there is no guarantee that they will always keep up with the pace of local rent increases. In areas where market rents exceed FMR, landlords often face the risk of receiving less than the market rate for their units. It is crucial for investors to monitor the local housing market and the adjustments made to voucher amounts to ensure financial stability.
In summary, while the data shows a strong rental market and steady demand, the FMR of $2000 is insufficient to cover the mortgage on a $712,492 home under typical financing conditions. Investors must also be prepared for the possibility that voucher amounts may not fully align with market rents. These points highlight the importance of thorough due diligence and understanding of local market dynamics before committing to a Section 8 investment in ZIP 90810.
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.