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 | $2,080 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,320 | $569,675 | 0.41% | F |
| 2BR | $2,860 | $710,891 | 0.4% | F |
| 3BR | $3,630 | $940,940 | 0.39% | F |
| 4BR | $4,060 | $1,161,704 | 0.35% | F |
| 5BR | $4,710 | $1,369,127 | 0.34% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 91042, located in Los Angeles, California, reveals a competitive yet favorable environment. The HUD Fair Market Rent (FMR) for the area is set at $2410 for fiscal year 2024, while the market rent, as measured by Zillow's ZORI index, stands at $2290. This indicates that landlords participating in the Section 8 program can generally expect to cashflow positively at the HUD FMR, without needing to rely on premium units. However, the difference between the HUD FMR and the ZORI is relatively small, suggesting that landlords should be prepared for some marginal adjustments in their cashflow expectations.
The median home value in ZIP 91042 is $912,638, which when compared to the average market rent, yields a rent-to-price ratio of approximately 2.7%. This ratio suggests that the rental market is somewhat in line with the overall housing market, indicating stability but also highlighting that appreciation might be limited relative to other areas with higher ratios.
Regarding the day-on-market (DOM) and price-cut statistics, both are noted as N/A, which implies that these metrics are not particularly relevant to the current analysis. However, it's worth noting that in markets where these statistics are available, they can provide insight into the rent-versus-buy dynamics. For instance, a high DOM might indicate a shift towards renting, whereas a significant price-cut percentage could suggest a challenging sales environment.
The strongest angle for investors in ZIP 91042 is likely cashflow. Given the positive difference between the HUD FMR and the ZORI, landlords can expect steady, reliable income from Section 8 tenants, even if the potential for rapid property appreciation is somewhat constrained. Stability in the form of consistent tenant payments and low turnover rates is another compelling factor, making this area attractive for those seeking long-term, low-risk investments.
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.