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 | $2,350 |
| 1 Bedroom | $2,630 |
| 2 Bedrooms | $3,240 |
| 3 Bedrooms | $4,110 |
| 4 Bedrooms | $4,600 |
| 5 Bedrooms | $5,336 |
| 6 Bedrooms | $5,976 |
| 7 Bedrooms | $6,454 |
| 8 Bedrooms | $6,777 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,630 | $367,947 | 0.71% | D |
| 2BR | $3,240 | $548,862 | 0.59% | F |
| 3BR | $4,110 | $796,261 | 0.52% | F |
| 4BR | $4,600 | $895,935 | 0.51% | F |
| 5BR | $5,336 | $953,414 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 91303, located in Los Angeles, CA, offers a detailed look into the rental landscape and the viability of voucher tenants. The HUD Fair Market Rent (FMR) for FY 2024 is set at $2,650 for this area. In comparison, the Zillow Observed Rental Index (ZORI) for ZIP 91303 stands at $2,506. This indicates that voucher tenants cashflow at the FMR level, providing landlords with a slight buffer above the average market rent.
To further analyze the investment potential, consider the median home value of $743,706. Using the HUD FMR of $2,650, the rent-to-price ratio is approximately 0.35%. This ratio suggests that rental income in this area can be a significant component of the total property value, making it attractive for investors focused on generating steady cash flow from their properties.
The dynamics between renting and buying in ZIP 91303 are also noteworthy. With a median Days on Market (DOM) of N/A and a negligible 0.2% share of homes experiencing price cuts, the real estate market appears stable, indicating little pressure from the sales side to lower rents. This stability supports the reliability of rental income streams and reduces the risk of vacancy due to homeownership becoming a more attractive option.
The strongest investor angle in ZIP 91303 is cash flow. Given the slight advantage of the HUD FMR over the market rent, combined with the high median home value and stable rent-to-buy environment, investors can expect consistent positive cash flow from Section 8 voucher tenants without the need to exclusively target premium units.
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.