Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
The economics of Section 8 in ZIP code 90853, located within the Los Angeles-Long Beach-Glendale County area, are governed by specific financial mechanisms designed to subsidize housing costs for low-income tenants. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2540. This figure represents the maximum amount that the housing authority will pay towards the rent for a two-bedroom unit in this specific area.
To understand the actual payments made to landlords, it's essential to break down the components of a Section 8 voucher. The voucher system operates under a formula where the tenant is responsible for paying 30% of their adjusted monthly income towards rent. The housing authority then covers the difference between the tenant's payment and the SAFMR, up to the maximum allowed. For example, if a tenant's monthly income is $2000, they would pay 30% of that, which is $600, toward the rent. The housing authority would then cover the remaining $1940, ensuring the landlord receives the total of $2540.
In addition to the base rent subsidy, there are utility allowances. These allowances are designed to help cover the cost of utilities such as electricity, water, and gas. The exact amount can vary based on the number of bedrooms and other factors, but it typically ranges from $200 to $300 per month. Therefore, if the utility allowance is $250, the landlord could receive an additional $250 on top of the base rent subsidy.
However, the local market rent for ZIP 90853 is currently unknown, which complicates the analysis of the economic impact on landlords. Despite this, we can still assess the potential gap or surplus based on the SAFMR. If the local market rent is higher than $2540, landlords might face a shortfall unless they can find tenants willing to pay more out-of-pocket. Conversely, if the market rent is lower, landlords could benefit from a surplus.
Given the SAFMR of $2540 and assuming a utility allowance of $250, the total reimbursement a landlord might expect from a Section 8 voucher for a two-bedroom unit would be $2790. However, without knowing the precise local market rent, it's challenging to determine whether this represents a surplus or a gap. Landlords should consult local real estate data to compare these figures against current market conditions.
Data Sources: FMR data from HUD (2027).
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.