Section 8 Fair Market Rent (FMR) for ZIP 91107 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 91107

• Housing Authority of the City of Los Angeles (Los Angeles, CA) - 53,428 Section 8 vouchers
• Los Angeles County Development Authority (Alhambra, CA) - 27,058 Section 8 vouchers
• City of Long Beach Housing Authority (Long Beach, CA) - 7,862 Section 8 vouchers
• Housing Authority of the City of Glendale (Glendale, CA) - 1,667 Section 8 vouchers
• Housing Authority of the City of Santa Monica (Santa Monica, CA) - 1,536 Section 8 vouchers
• City of Pasadena Housing Department (Pasadena, CA) - 1,525 Section 8 vouchers
• Housing Authority of the City of Inglewood (Inglewood, CA) - 1,201 Section 8 vouchers
• Housing Authority of the City of Pomona (Pomona, CA) - 1,119 Section 8 vouchers
• Housing Authority of the City of Burbank (Burbank, CA) - 1,047 Section 8 vouchers
• Housing Authority of the City of Baldwin Park (Baldwin Park, CA) - 913 Section 8 vouchers

To determine if you should buy in ZIP 91107 (Pasadena, CA) for Section 8 investments, follow this decision tree:

• Does FMR $2840 (zip FY 2024) clear debt service on a $1,331,267 property?
  • If yes: The Fair Market Rent (FMR) of $2840 is sufficient to cover the debt service on a property valued at $1,331,267. This means that the rental income from a Section 8 tenant would meet the financial obligations of owning the property.
  • If no: The FMR of $2840 does not clear the debt service on a property costing $1,331,267. Therefore, a Section 8 investment in this area would not be financially viable without additional sources of income.
• Is market rent $3,115 (ZORI) above, at, or below FMR?
  • If market rent is above FMR: The Zillow Observed Rental Index (ZORI) indicates a market rent of $3,115, which is higher than the FMR of $2840. This suggests that there is potential for higher rental income from non-Section 8 tenants, making the investment more attractive.
  • If market rent is at or below FMR: The market rent of $3,115 is either at or slightly below the FMR of $2840. This could limit the pool of potential tenants willing to pay above the subsidized rate, making Section 8 the primary source of rental income.
• Are 38.9% renters + 25-day DOM enough demand?
  • If the percentage of renters and days on market indicate strong demand: With 38.9% of the population being renters and an average of 25 days on market, there is a steady demand for rental properties. This makes it likely that a Section 8 property will remain occupied, ensuring consistent income.
  • If the demand is weak: If the rental market is weak, despite the percentage of renters and days on market, then the attractiveness of a Section 8 investment diminishes. It's important to consider other factors such as vacancy rates and local economic conditions.

The decision to invest in ZIP 91107 for Section 8 properties hinges on these factors. If the FMR clears debt service, market rents exceed FMR, and there is strong demand, the answer is a clear yes. If any of these conditions are not met, the decision becomes more nuanced, potentially leading to an it depends scenario where further analysis is required. A definitive no would only apply if the FMR cannot support the debt service, indicating that the investment would not be financially sound.

Data Sources: FMR data from HUD (2027). 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.