Section 8 Fair Market Rent (FMR) for ZIP 91016 - 2027

Investment Score for ZIP 91016

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	$2,290
1 Bedroom	$2,560
2 Bedrooms	$3,160
3 Bedrooms	$4,010
4 Bedrooms	$4,490
5 Bedrooms	$5,208
6 Bedrooms	$5,833
7 Bedrooms	$6,300
8 Bedrooms	$6,615

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	$2,560	$643,021	0.4%	F
2BR	$3,160	$800,887	0.39%	F
3BR	$4,010	$1,008,364	0.4%	F
4BR	$4,490	$1,158,682	0.39%	F
5BR	$5,208	$1,574,709	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91016 (Monrovia, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91016, Monrovia, CA, is set by HUD for 2026 as follows: - 0BR: $1950 - 1BR: $2180 - 2BR: $2720 (which represents 33.8% of the median household income) - 3BR: $3450 - 4BR: $3840 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the number of bedrooms required. However, it is important to note how these FMRs compare to actual rental prices in the area. According to Zillow, the median price for a 2BR property in Monrovia is $805,287. This translates to a price-to-FMR ratio of 24.7x, indicating that actual rental prices are significantly higher than the FMRs. For instance, a 2BR unit would typically cost around $2,720 per month, but the actual median rental price is likely much higher due to the high property values. This disparity creates significant constraints for voucher holders. They will find it challenging to secure housing that meets their needs within the FMR limits. Many landlords may not accept vouchers because they do not cover the actual market rent, leading to limited options for tenants with Section 8 vouchers. #### Affordability & Renter Profile Monrovia has a population of 41,140, with 52.1% of residents being renters. The occupancy rate stands at 95.3%, suggesting a tight rental market where demand exceeds supply. Given that the median household income is $96,540, the affordability of housing is a critical issue. The FMR for a 2BR unit is only 33.8% of the median income, which means that even without a voucher, renting a 2BR unit is relatively affordable compared to owning one. However, the high price-to-FMR ratio indicates that the rental market is highly competitive and expensive. The typical renter in Monrovia is likely to be a middle-class individual or family who can afford the higher-than-average rents. This makes it particularly difficult for lower-income families who rely on Section 8 vouchers to find suitable housing. #### Investor Angle From an investor’s perspective, the ZIP code 91016 offers mixed opportunities. The cash flow potential for properties rented at FMR levels is low given the high actual rental prices. For example, a 2BR unit rented at $2,720 per month would generate far less income than what could be obtained in the open market. To determine the investment grade, we need to consider factors such as vacancy rates, rental yields, and overall demand. With an occupancy rate of 95.3%, the vacancy rate is very low, which suggests strong demand. However, the high price-to-FMR ratio implies that properties rented at FMR levels will struggle to compete with market rents. Therefore, the investment grade for Section 8-focused properties in this ZIP code is relatively low, as the returns are unlikely to justify the investment. #### Specific Actionable Insights 1. **Focus on Higher-Rental Properties**: Given the high price-to-FMR ratio, investors should focus on properties that can command higher rental prices. A 2BR unit rented at $2,720 per month would yield a rental income that is only 1/24th of the median property value, making it unattractive for most investors. Instead, targeting properties that can be rented at market rates would provide better returns. 2. **Consider Mixed-Income Developments**: Investors might explore developing mixed-income housing projects that cater to both voucher holders and market-rate renters. By including a mix of units that can be rented at FMR and market rates, developers can balance the financial risks associated with relying solely on Section 8 vouchers. 3. **Engage with Local Housing Authorities**: To increase the likelihood of finding tenants with Section 8 vouchers, investors should engage with local housing authorities and understand the processes and incentives available for landlords who accept vouchers. This could include participating in programs that offer additional subsidies or incentives to landlords. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 91016 presents a challenging environment. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow when renting properties at FMR levels. Therefore, the recommendation is to **Skip** investing in this ZIP code if the primary goal is to rely on Section 8 vouchers for tenant acquisition. Instead, investors should look for areas with a lower price-to-FMR ratio or consider other strategies like mixed-income developments to diversify their tenant base and improve financial outcomes.

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.