Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $2540 for ZIP 91109 in fiscal year 2024 will sufficiently cover the mortgage on a property. While the exact mortgage rate and home value for ZIP 91109 are not available, we can look at broader trends. For instance, according to Zillow, mortgage rates have been fluctuating but generally remain within a predictable range. Investors should calculate their mortgage payments based on current rates and the median home value in similar areas to ensure that the FMR can cover these costs.
The investor might also be concerned about the level of renter demand at an unspecified percentage. Data from ZIP Code 91109 indicates that this area is primarily associated with a processing and distribution center rather than residential use, which suggests limited demand for residential rentals. However, the surrounding area of Pasadena, CA, has seen steady growth in rental demand. Landlords and investors must conduct thorough market analysis to understand the specific dynamics of ZIP 91109 and its neighboring areas.
Another objection could be whether the Section 8 voucher program will keep pace with market rents. The provided data does not offer specific insights into the adjustment of voucher amounts in ZIP 91109. However, a general trend observed in other regions, such as Atlanta, shows that rent increases can impact the stability of the voucher program. According to Axios Atlanta, the pause on rent hikes due to federal funding issues could affect landlords' willingness to accept vouchers. It is crucial for investors to stay informed about local policy changes and funding statuses that could influence voucher availability and amounts.
In summary, while the data provides some context for understanding the challenges in ZIP 91109, it is incomplete regarding specific mortgage rates and home values. Investors must perform detailed analyses of the local market and policy environment to make informed decisions. The FMR of $2540 should be compared against typical mortgage payments and home values, and the potential impact of the voucher program on rental income must be considered.
Data Sources: FMR data from HUD (2027).
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.