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 | $2,430 |
| 1 Bedroom | $2,720 |
| 2 Bedrooms | $3,350 |
| 3 Bedrooms | $4,250 |
| 4 Bedrooms | $4,760 |
| 5 Bedrooms | $5,522 |
| 6 Bedrooms | $6,185 |
| 7 Bedrooms | $6,680 |
| 8 Bedrooms | $7,014 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,350 | $782,029 | 0.43% | F |
| 3BR | $4,250 | $1,219,505 | 0.35% | F |
| 4BR | $4,760 | $1,818,851 | 0.26% | F |
| 5BR | $5,522 | $2,834,702 | 0.19% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 91007 (Arcadia, CA) does not favor Section 8 tenants. The Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $2640, while the market rent as indicated by ZORI stands at $3,082. This gap means that landlords would be underpaid by approximately $442 per unit if they solely relied on Section 8 vouchers.
Acquisition in this area is challenging due to the high median home value of $1,429,767. With no data available on days on market (DOM) and a negligible 0.2% share of homes that have had their prices cut, it suggests that the housing market is robust and not particularly accommodating for those seeking affordable acquisition opportunities.
Tenant demand is present but not overwhelming. The ZIP code has a population of 33,029, with 47.1% being renters. This indicates a significant portion of the population that might be interested in Section 8 housing, yet the total number of potential tenants is limited by the overall population size.
In summary, ZIP 91007 presents a scenario where the disparity between HUD's FMR and market rents makes Section 8 properties less attractive for landlords. High home values further complicate acquisition efforts, and although there is a substantial renter base, it is not enough to offset the financial drawbacks of accepting Section 8 vouchers. Landlords and small-portfolio investors should carefully weigh these factors before considering investments in this area.
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.