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 | $2,270 |
| 1 Bedroom | $2,540 |
| 2 Bedrooms | $3,130 |
| 3 Bedrooms | $3,970 |
| 4 Bedrooms | $4,440 |
| 5 Bedrooms | $5,150 |
| 6 Bedrooms | $5,768 |
| 7 Bedrooms | $6,229 |
| 8 Bedrooms | $6,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,540 | $702,428 | 0.36% | F |
| 2BR | $3,130 | $881,973 | 0.35% | F |
| 3BR | $3,970 | $1,110,806 | 0.36% | F |
| 4BR | $4,440 | $1,646,905 | 0.27% | F |
| 5BR | $5,150 | $2,615,610 | 0.2% | F |
U.S. Census Bureau data (2024)
ZIP 91103, located in Pasadena, California, is an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $2370, which is significantly lower than the market rent of $3,578. This creates a substantial spread of $1208 per unit, allowing landlords to benefit from guaranteed rental income while still maintaining above-average cash flow compared to the rest of the metropolitan area.
The median home value in ZIP 91103 stands at $1,083,811, indicating that the area is relatively affluent. However, the 0.2% price-cut share suggests that there is little need for landlords to reduce their rents to attract tenants, further reinforcing its role as a stable cash-flow source. The N/A-day Days on Market (DOM) implies that units in this ZIP code are likely to be occupied quickly, reducing vacancy rates and ensuring steady income.
While the 53.0% renter share and median income of $93,660 might suggest some potential for appreciation or as a diversifier, the primary advantage here lies in its stability as a cash-flow anchor. The high median income supports the ability of residents to pay higher rents, but the Section 8 program caps the rent at $2370, making it a reliable and predictable income source. Landlords can count on consistent returns without the volatility associated with other investment strategies.
In summary, ZIP 91103 should be considered a cash-flow anchor due to the significant difference between FMR and market rents, the quick occupancy rate, and the overall financial stability of the area. Small-portfolio investors looking for steady, dependable income should prioritize this ZIP code in their Section 8 portfolio strategy.
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.