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 | $2,370 |
| 1 Bedroom | $2,640 |
| 2 Bedrooms | $3,260 |
| 3 Bedrooms | $4,140 |
| 4 Bedrooms | $4,630 |
| 5 Bedrooms | $5,371 |
| 6 Bedrooms | $6,016 |
| 7 Bedrooms | $6,497 |
| 8 Bedrooms | $6,822 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,640 | $422,224 | 0.63% | D |
| 2BR | $3,260 | $752,636 | 0.43% | F |
| 3BR | $4,140 | $1,328,693 | 0.31% | F |
| 4BR | $4,630 | $1,688,168 | 0.27% | F |
| 5BR | $5,371 | $1,945,268 | 0.28% | F |
U.S. Census Bureau data (2024)
If a landlord is considering investing in ZIP 90814 (Long Beach, CA) for Section 8 properties, they should follow a structured decision-making process based on the following criteria:
1. Does the Fair Market Rent (FMR) of $2,690 cover the debt service on a property valued at $983,441?
Yes: The FMR is sufficient to clear the debt service if the annual debt service is less than $32,280 ($2,690 x 12 months). This means that the monthly rent received can cover the mortgage payments and other loan obligations.
No: If the annual debt service exceeds $32,280, then the FMR will not be enough to cover the costs. In this case, purchasing a Section 8 property in ZIP 90814 would not be financially viable.
2. Is the market rent of $2,444 (ZORI) above, at, or below the FMR?
Above: If the ZORI is higher than the FMR, landlords might consider the opportunity cost of renting to non-Section 8 tenants who could pay more. However, they must also weigh the stability and reliability of Section 8 tenants.
At or Below: If the ZORI is at or below the FMR, then there is little to no opportunity cost for choosing Section 8 tenants over market-rate ones. This makes ZIP 90814 more attractive for Section 8 investments.
3. Are the demographics suitable for Section 8 tenants?
Yes: With 66.5% of residents being renters, there is significant demand for rental properties. Additionally, while the days on market (DOM) is listed as N/A, high renter percentages generally indicate a stable rental market. These factors suggest that there is ample demand for Section 8 units in ZIP 90814.
No: If the percentage of renters were significantly lower, or if the DOM was high, indicating difficulty in finding tenants quickly, the investment in Section 8 properties might not be advisable. However, given the 66.5% renter rate, this branch does not apply.
It Depends: If the landlord is concerned about the N/A DOM, they should investigate further into the local real estate market to understand the vacancy rates and how quickly properties are rented out. This additional research will help clarify whether the demand is strong enough to support a Section 8 investment.
In conclusion, if the FMR of $2,690 covers the debt service and the ZORI is at or below this figure, and the high renter percentage indicates strong demand, then ZIP 90814 is a suitable location for a Section 8 investment. Landlords should ensure that their financials align with these figures before proceeding.
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.