Section 8 Fair Market Rent (FMR) for ZIP 90815 - 2027

Investment Score for ZIP 90815

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	$2,480
1 Bedroom	$2,770
2 Bedrooms	$3,420
3 Bedrooms	$4,340
4 Bedrooms	$4,860
5 Bedrooms	$5,638
6 Bedrooms	$6,315
7 Bedrooms	$6,820
8 Bedrooms	$7,161

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	$2,770	$421,971	0.66%	D
2BR	$3,420	$849,319	0.4%	F
3BR	$4,340	$1,037,193	0.42%	F
4BR	$4,860	$1,175,045	0.41%	F
5BR	$5,638	$1,452,237	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90815 (Long Beach, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 90815, as of 2026, are as follows: - 0BR: $2130 - 1BR: $2390 - 2BR: $2980 - 3BR: $3780 - 4BR: $4210 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in 90815 is significantly higher. For instance, the Zillow median price for a 2BR unit is $851,256, which translates to a monthly mortgage payment of approximately $3,547 (assuming a 30-year fixed-rate mortgage at 4.5%). This means that the price-to-FMR ratio for a 2BR unit is about 23.8x, indicating that the actual rent is far above what the FMR suggests. Given these dynamics, voucher holders face significant constraints in finding affordable housing. The FMR for a 2BR unit is only $2980, which is well below the median rental price. Consequently, voucher holders may struggle to find units that landlords are willing to accept at the FMR rate. #### Affordability & Renter Profile ZIP code 90815 has a population of 43,023, with 35.1% of residents being renters. The occupancy rate is high at 97.2%, suggesting a tight rental market where demand outstrips supply. The median household income in the area is $119,716, which places it in a relatively affluent category. Despite the high median income, the FMR for a 2BR unit represents only 29.9% of the median income, indicating that the rental market is still somewhat affordable for those earning the median income. However, for lower-income households relying on Section 8 vouchers, the gap between FMR and actual rent is substantial. This makes it challenging for voucher holders to secure housing, especially in a market with such high occupancy rates. #### Investor Angle From an investor’s perspective, the ZIP code 90815 presents a mixed picture. While the rental market is robust and there is a high occupancy rate, the FMR is significantly lower than the actual rental prices. The Zillow median price for a 2BR unit is $851,256, translating to a monthly mortgage payment of around $3,547. Given that the FMR for a 2BR unit is only $2980, the difference between the mortgage payment and the FMR is substantial. This implies that investors who rely solely on FMR to cover their mortgage payments would likely face negative cash flow. To achieve positive cash flow, investors would need to either charge more than the FMR (which may limit their pool of tenants to those without vouchers) or seek additional subsidies or incentives beyond the standard Section 8 program. The investment grade for this ZIP code is moderate to low due to the high cost of entry into the market and the limited ability to generate positive cash flow using only the FMR. Investors should carefully consider the potential for long-term appreciation and other factors before entering this market. #### Specific Actionable Insights 1. **Target Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting tenants who do not require Section 8 vouchers. This could involve marketing strategies that highlight amenities and location advantages to appeal to higher-income renters. 2. **Seek Additional Subsidies**: If targeting voucher holders, investors should explore additional subsidies or local government programs that can help bridge the gap between FMR and actual mortgage payments. This could include state-level assistance programs or partnerships with non-profit organizations. 3. **Consider Long-Term Appreciation**: Despite the challenges in achieving positive cash flow, the high median home value and strong occupancy rates suggest that there may be opportunities for long-term capital appreciation. Investors should evaluate the potential for property value growth over time. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90815 is to **skip** this market. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow while serving voucher holders. Instead, investors might want to look for areas with a lower price-to-FMR ratio or higher concentrations of voucher-eligible tenants. However, for investors willing to target a broader tenant base or those who can leverage additional subsidies, there may be opportunities to enter the market. The key will be to balance the high costs with strategic planning and a focus on long-term appreciation rather than immediate cash flow.

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.