Section 8 Fair Market Rent (FMR) for ZIP 90813 - 2027

Investment Score for ZIP 90813

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	$1,910
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

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	$2,130	$392,706	0.54%	F
2BR	$2,630	$537,877	0.49%	F
3BR	$3,340	$695,255	0.48%	F
4BR	$3,730	$784,021	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90813 (Long Beach, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90813 is set by HUD for 2026, with the following rates: - 0BR: $1610 - 1BR: $1800 - 2BR: $2250 - 3BR: $2850 - 4BR: $3180 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in 90813 is significantly higher. According to Zillow, the median price for a 2BR property is $544,452. This translates to a price-to-FMR ratio of 20.2x, which means that the actual market rents are likely much higher than the FMRs. For instance, a 2BR unit would be expected to rent for around $45,600 annually based on the median price, which is far above the $2250 monthly FMR. This creates significant constraints for voucher holders. They will find it challenging to secure housing within their budget, particularly for larger units. The disparity between FMR and market rents suggests that voucher holders are limited to a very small subset of available properties, likely those that are older, smaller, or located in less desirable areas. #### Affordability & Renter Profile ZIP code 90813 has a population of 51,241, with 84.9% of residents being renters. This indicates a strong rental market, but also one that is highly competitive and potentially overpriced relative to the incomes of the residents. The median household income is $54,526, which means that even without a voucher, many residents are struggling to afford housing. The occupancy rate of 91.9% suggests that there is a high demand for rental units, possibly leading to a tight market where landlords have considerable leverage over pricing. Given the high percentage of renters and the relatively low median income, the market is likely to be highly sensitive to any increases in rent or decreases in income. The 2BR FMR of $2250 represents 49.5% of the median income, indicating that a significant portion of the population relies heavily on affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 90813 presents a mixed picture. While the market rents are high, the FMRs set by HUD are much lower. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields in the area. Given the median price of $544,452 for a 2BR unit, let’s assume a conservative annual rental yield of 5%. This would result in an annual rental income of approximately $27,222.50, or $2,268.54 per month. At the FMR of $2250, the difference is only about $18.54 per month, which is negligible. Therefore, relying solely on FMRs would make it difficult for investors to achieve positive cash flow, especially considering the costs associated with property management, maintenance, and other expenses. In terms of investment grade, the high price-to-FMR ratio and the tight rental market suggest that this ZIP code might be considered a speculative investment. The potential for appreciation is high due to the strong demand and limited supply, but the immediate cash flow is likely to be negative unless the investor can find ways to reduce costs or increase rents beyond FMRs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on acquiring 0BR and 1BR units, which are more likely to be rented out at or near FMR levels. The FMR for these units is $1610 and $1800 respectively, which are more aligned with the income levels of the local population. 2. **Consider Property Location**: Investors should prioritize properties in less desirable areas where rents are closer to FMR levels. These areas may offer better opportunities for positive cash flow while still benefiting from the overall demand in the ZIP code. 3. **Explore Alternative Financing Options**: Due to the high price-to-FMR ratio, traditional financing might not be sufficient to cover the purchase cost. Investors could explore alternative financing methods such as hard money loans, private lenders, or creative financing structures to bridge the gap between purchase price and FMR-based rental income. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90813 is to **Skip**. The high price-to-FMR ratio and the limited number of properties that can be rented out at FMR levels make it challenging to achieve positive cash flow. Additionally, the strong rental market and high demand for housing suggest that properties are likely to appreciate in value, but this appreciation is unlikely to offset the initial investment costs when renting to voucher holders. Investors should look for ZIP codes with a more favorable price-to-FMR ratio or consider alternative investment strategies that do not rely solely on Section 8 vouchers.

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.