Section 8 Fair Market Rent (FMR) for ZIP 91107 - 2027
Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Investment Score for ZIP 91107
F
Monthly Rent (2BR)
$3,700
Median Price (2BR)
$945,211
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $2,690 |
| 1 Bedroom | $3,000 |
| 2 Bedrooms | $3,700 |
| 3 Bedrooms | $4,690 |
| 4 Bedrooms | $5,250 |
| 5 Bedrooms | $6,090 |
| 6 Bedrooms | $6,821 |
| 7 Bedrooms | $7,367 |
| 8 Bedrooms | $7,735 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 1BR |
$3,000 |
$544,187 |
0.55% |
F |
| 2BR |
$3,700 |
$945,211 |
0.39% |
F |
| 3BR |
$4,690 |
$1,329,006 |
0.35% |
F |
| 4BR |
$5,250 |
$1,780,211 |
0.29% |
F |
| 5BR |
$6,090 |
$2,668,638 |
0.23% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$126,449
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). 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.