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 | $2,600 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,580 |
| 3 Bedrooms | $4,540 |
| 4 Bedrooms | $5,080 |
| 5 Bedrooms | $5,893 |
| 6 Bedrooms | $6,600 |
| 7 Bedrooms | $7,128 |
| 8 Bedrooms | $7,484 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,900 | $657,050 | 0.44% | F |
| 2BR | $3,580 | $895,720 | 0.4% | F |
| 3BR | $4,540 | $1,137,886 | 0.4% | F |
| 4BR | $5,080 | $1,469,359 | 0.35% | F |
| 5BR | $5,893 | $1,889,996 | 0.31% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Altadena, CA (ZIP 91001) presents a unique opportunity for landlords and small-portfolio investors. With a median home value at $1,120,075, the area reflects a robust housing market that has historically been resilient against economic downturns. The fact that only 0.2% of listings have reduced their prices indicates strong seller pricing power, which is likely to persist over the next 12-24 months.
The median days on market (DOM) being listed as N/A suggests either an extremely tight market where homes sell quickly upon listing, or a scarcity of recent sales data that would provide a meaningful DOM figure. Both scenarios point to a highly competitive environment, favoring those who can offer properties for sale or rent.
Moving to the rental side, the Federal Market Rent (FMR) for ZIP 91001 for fiscal year 2024 is set at $2,870, significantly lower than the actual market rent of $4,152. This discrepancy signals that landlords in Altadena can maintain higher rents without fear of losing tenants to government-subsidized options, such as those covered under Section 8 programs. Landlords should be prepared to negotiate and possibly adjust their rents to remain competitive yet profitable.
For long-term investors, the setup in Altadena implies a realistic appreciation thesis based on the strong fundamentals of the local economy and the limited supply of housing stock. While precise future values cannot be guaranteed, the current pricing power and the gap between market rents and subsidized rents suggest that property values will likely hold steady or appreciate gradually. Investors should focus on quality properties that can command premium rents and leverage the strong seller's market to maximize returns on investment.
In conclusion, Altadena's real estate market is characterized by high home values and strong seller pricing power, with a rental market that outpaces government subsidies. These factors create a favorable environment for both short-term and long-term investments, particularly for those who can navigate the complexities of maintaining high-quality properties and managing tenant expectations.
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.