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 | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,610 | $675,304 | 0.53% | F |
| 2BR | $4,450 | $1,217,702 | 0.37% | F |
| 3BR | $5,650 | $1,849,143 | 0.31% | F |
| 4BR | $6,320 | $2,759,244 | 0.23% | F |
| 5BR | $7,331 | $4,044,613 | 0.18% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $3820 for ZIP 91105 in Pasadena, CA, landlords can expect a reasonable subsidy from the government for eligible tenants. The market rent, known as ZORI, stands at $3,543, indicating that the FMR is slightly above the average rental price in the area. This means that landlords participating in the Section 8 program can potentially charge more than the typical market rate, thus increasing their revenue. The median home value in Pasadena is $1,821,528, reflecting a high-end real estate market where rental properties are also likely to be priced higher. With 44.3% of residents being renters, there is a significant demand for rental housing, which could benefit landlords who offer quality units through the Section 8 program. The median income of $156,791 suggests that while some residents may struggle to afford market rents, there is a substantial middle class that could take advantage of subsidized housing options. Although the Days on Market (DOM) and price-cut share data are unavailable, the participation in Section 8 can provide a steady stream of income regardless of the local real estate market fluctuations. Given these factors, landlords and small-portfolio investors should consider the benefits of the Section 8 program in Pasadena, as it offers a stable tenant base and a guaranteed rent payment structure.
A strong case can be made for landlords in ZIP 91105 to participate in Section 8 due to the high median home value and significant renter population. The FMR being above the market rent provides an incentive to join the program, ensuring that landlords receive competitive rates. Moreover, the median income indicates a mixed economic landscape, where Section 8 can fill a critical gap for those who cannot afford market rates. This makes Section 8 an attractive option for maintaining occupancy and securing a reliable source of income. In conclusion, the data points towards a positive verdict for Section 8 in Pasadena, making it a worthwhile investment strategy for property owners.
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.