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 | $2,130 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,160 |
| 5 Bedrooms | $4,826 |
| 6 Bedrooms | $5,405 |
| 7 Bedrooms | $5,837 |
| 8 Bedrooms | $6,129 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,370 | $590,176 | 0.4% | F |
| 2BR | $2,930 | $749,437 | 0.39% | F |
| 3BR | $3,720 | $906,240 | 0.41% | F |
| 4BR | $4,160 | $1,156,916 | 0.36% | F |
| 5BR | $4,826 | $1,498,342 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP code 91040 is situated in the affluent neighborhood of Pasadena, Los Angeles, California. This area is characterized by a diverse community of 20,821 residents, with 33.5% being renters. The median household income in this ZIP code is a substantial $98,256, reflecting the higher economic status of its inhabitants. Correspondingly, the median home value is impressively high at $929,379, indicating a robust housing market.
The rental economics in 91040 present an interesting dynamic. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,420, which is notably lower than the actual market rent, measured at $2,644 (ZORI). This gap suggests that landlords who are participating in the Section 8 program may experience some financial strain due to the discrepancy between the government-subsidized rates and the true cost of renting in the area.
Given these figures, it's clear that 91040 is not ideal for a hands-off Section 8 operator. The difference between the FMR and the ZORI indicates that landlords would need to be actively involved in managing their properties to ensure profitability. A hands-on approach, such as improving property amenities or increasing efficiency in operations, would be necessary to balance the lower rental rates provided by Section 8 against the higher market costs.
In conclusion, while the Pasadena area offers significant opportunities for real estate investment, those interested in Section 8 should be prepared for a more engaged role. The high median home values and incomes suggest a competitive market, making it essential for investors to focus on value-add strategies to succeed in this ZIP code.
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.