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 | $2,510 |
| 1 Bedroom | $2,800 |
| 2 Bedrooms | $3,460 |
| 3 Bedrooms | $4,390 |
| 4 Bedrooms | $4,910 |
| 5 Bedrooms | $5,696 |
| 6 Bedrooms | $6,380 |
| 7 Bedrooms | $6,890 |
| 8 Bedrooms | $7,235 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,800 | $456,367 | 0.61% | D |
| 2BR | $3,460 | $705,430 | 0.49% | F |
| 3BR | $4,390 | $925,422 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 91203, located in Glendale, California, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2840, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2948. This creates a gap of $108, which represents a 3.8% difference between the two figures.
Given that the FMR is lower than the market rent, it's important to highlight the cost implications for landlords who choose to house voucher tenants. Accepting Section 8 tenants means that landlords will receive a payment close to the FMR, which is below the open-market rental rate. This can result in a loss of potential revenue if the landlord could otherwise rent out the property at market rates.
In Glendale, where 81.1% of residents are renters, and the median home value is $791,030, the median income of $82,364 suggests that many residents may rely on assistance programs such as Section 8 to afford housing. Landlords must weigh the benefits of having a steady tenant stream against the lower rental income compared to the market rate.
Landlords considering Section 8 properties should also factor in the administrative costs associated with the program, including the time and effort required to manage the application process and any potential delays in receiving payments. These costs can further impact the overall yield of the investment.
While Glendale offers a robust rental market, with nearly 81% of the population renting, the decision to participate in the Section 8 program requires careful consideration of the financial implications. The $108 gap, representing a 3.8% discount, may not be significant enough to offset the additional management and administrative costs for some landlords.
For small-portfolio investors, the choice to accept Section 8 tenants might depend on the specific property and its location within Glendale. Properties in areas with higher competition among landlords or those that struggle to attract market-rate tenants might find Section 8 vouchers a viable option to ensure occupancy and a stable income source.
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.