Section 8 Fair Market Rent (FMR) for ZIP 91118 - 2027

FY 2027 Fair Market Rent Rates

To classify ZIP code 91118 in Unknown, CA, we must consider the yield and stability factors based on the available data. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2540. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 program in this area. However, due to the lack of specific market rent and home value data, our analysis will focus primarily on the FMR.

On the stability axis, we have limited information. The percentage of renters, days on market (DOM), and median income figures are not provided, which makes it challenging to assess the long-term financial health and demand stability of the rental market in ZIP 91118.

The high FMR of $2540 suggests a potentially lucrative opportunity for landlords participating in the Section 8 program. This is because the subsidy ensures a consistent rental income stream that matches this figure, regardless of the actual market conditions. For small-portfolio investors, this can be seen as a high-yield investment, especially if they manage to secure properties below the average market value, thereby maximizing their profit margins.

Without specific percentages of renters or days on market, it's difficult to determine the level of stability. Typically, areas with higher percentages of renters and shorter DOM periods indicate a more stable rental market. The absence of these figures leaves us without a clear understanding of the demand dynamics and potential risks associated with tenant turnover.

The median income figure is also missing, which is crucial for understanding the economic base of the area and whether there is sufficient demand from eligible Section 8 participants. A strong local economy usually correlates with lower vacancy rates and higher tenant retention, contributing to a more stable cash flow.

In summary, ZIP 91118 appears to offer a high-yield potential due to the substantial FMR of $2540. However, the lack of key stability indicators prevents a definitive classification of the market as either a high-yield/low-stability flip-style market or a steady-cashflow zone. Landlords and investors should proceed with caution, seeking additional local market data to make informed decisions about property investments in this ZIP code.

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.