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 |
The economics of Section 8 in ZIP code 91224, located within the Los Angeles-Long Beach-Glendale County area, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2540 per month for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
To understand what a landlord can expect from a Section 8 voucher, it's crucial to break down the components of the payment. The voucher covers the difference between the tenant's portion of the rent and the total rent amount. For a two-bedroom unit, the tenant typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for a tenant eligible for Section 8, then their portion would be $450 per month. This figure is consistent with HUD guidelines but can vary based on individual tenant income levels.
In addition to covering the rent, the voucher also includes utility allowances. These allowances are designed to help cover the cost of utilities, such as electricity, gas, water, and sewer. The exact amount can vary, but for a two-bedroom apartment in ZIP 91224, it generally ranges from $300 to $400 per month. Therefore, if we take the upper limit of $400 for utility allowances, the total covered by the voucher would be $2940 ($2540 for rent plus $400 for utilities).
However, landlords should note that the voucher reimbursement is capped at the SAFMR. Thus, even if the tenant's portion and utility allowances exceed $2540, the landlord will only receive up to $2540 as the monthly rental payment. This means that if the local market rent for a two-bedroom apartment exceeds $2540, landlords will face a reimbursement gap. Conversely, if the local market rent is below $2540, landlords might see a surplus.
Given the SAFMR of $2540 for a two-bedroom apartment in ZIP 91224, landlords should ensure that their rental properties meet the quality standards required by the Section 8 program to maximize their chances of being approved. The typical reimbursement gap or surplus for a two-bedroom voucher in this ZIP code is directly tied to the local market rent, which is currently unavailable. However, assuming market rents align closely with the SAFMR, there would likely be little to no surplus or gap.
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.