Section 8 Fair Market Rent (FMR) for ZIP 91008 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 91008

• Housing Authority of the City of Los Angeles (Los Angeles, CA) - 53,428 Section 8 vouchers
• Los Angeles County Development Authority (Alhambra, CA) - 27,058 Section 8 vouchers
• City of Long Beach Housing Authority (Long Beach, CA) - 7,862 Section 8 vouchers
• Housing Authority of the City of Glendale (Glendale, CA) - 1,667 Section 8 vouchers
• Housing Authority of the City of Santa Monica (Santa Monica, CA) - 1,536 Section 8 vouchers
• City of Pasadena Housing Department (Pasadena, CA) - 1,525 Section 8 vouchers
• Housing Authority of the City of Inglewood (Inglewood, CA) - 1,201 Section 8 vouchers
• Housing Authority of the City of Pomona (Pomona, CA) - 1,119 Section 8 vouchers
• Housing Authority of the City of Burbank (Burbank, CA) - 1,047 Section 8 vouchers
• Housing Authority of the City of Baldwin Park (Baldwin Park, CA) - 913 Section 8 vouchers

A skeptical investor looking into ZIP 91008 might have several concerns regarding the feasibility of investing in Section 8 properties. Let's address these objections head-on using the available data.

Will FMR $2680 (zip FY 2024) cover the mortgage on a $1,917,254 home?

• The Fair Market Rent (FMR) for ZIP 91008 in fiscal year 2024 is set at $2680. This figure represents the maximum amount that a landlord can charge for a Section 8 rental agreement.
• To determine if this FMR will cover the mortgage, we need to calculate the monthly mortgage payment on a home valued at $1,917,254. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment would be approximately $9,200.
• Clearly, the FMR of $2680 does not cover the mortgage payment of $9,200. Therefore, it is unlikely that a property valued at $1,917,254 would be financially viable under Section 8 guidelines without additional income sources.

Is there enough renter demand at 7.4%?

• The 7.4% represents the percentage of households in ZIP 91008 that participate in the Section 8 housing choice voucher program. This metric suggests the level of demand for subsidized housing.
• A participation rate of 7.4% indicates a moderate level of demand. However, this alone does not provide a complete picture of the overall rental market dynamics in the area.
• To accurately assess the demand, we would need to analyze the vacancy rates and the number of units available compared to those needed by low-income families. The data provided does not offer this level of detail, so we cannot definitively conclude whether the demand is sufficient based solely on the 7.4% participation rate.

Will vouchers keep pace with $2,400 market rents?

• The market rent in ZIP 91008 is reported to be $2,400, which is higher than the FMR of $2680. This discrepancy raises questions about whether the voucher amounts will be sufficient to meet market rents.
• Historically, voucher amounts have often lagged behind market rents, especially in areas experiencing rapid gentrification or economic growth. The data provided does not give insights into future adjustments to voucher amounts.
• Given the current gap between the FMR and market rent, it is likely that landlords would face challenges in covering their costs solely through Section 8 vouchers. They may need to supplement their income with other sources or consider non-Section 8 tenants to achieve financial stability.

In conclusion, while ZIP 91008 presents opportunities for landlords and small-portfolio investors, the data reveals significant financial constraints. The FMR does not cover the mortgage on high-value homes, the demand for Section 8 vouchers is moderate but requires further analysis, and the voucher amounts are currently insufficient to meet market rents. These factors should be carefully considered before making investment decisions.

Data Sources: FMR data from HUD (2027). 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.