Section 8 Fair Market Rent (FMR) for ZIP 91304 - 2027

Investment Score for ZIP 91304

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,230
1 Bedroom	$2,490
2 Bedrooms	$3,070
3 Bedrooms	$3,890
4 Bedrooms	$4,350
5 Bedrooms	$5,046
6 Bedrooms	$5,652
7 Bedrooms	$6,104
8 Bedrooms	$6,409

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,490	$309,350	0.8%	C
2BR	$3,070	$417,380	0.74%	D
3BR	$3,890	$852,476	0.46%	F
4BR	$4,350	$1,057,139	0.41%	F
5BR	$5,046	$1,360,948	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91304 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91304 in Los Angeles, California, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2670, which represents 35.6% of the median household income of $90,070. This indicates that the rent for a two-bedroom apartment is relatively affordable compared to the income levels in the area. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $437,467. The price-to-FMR ratio is 13.7x, meaning that the actual market price is over 13 times the FMR. This suggests that landlords who participate in the Section 8 program are likely to face constraints, as they will only be able to charge up to the FMR rate, which is much lower than the market rate. #### Affordability & Renter Profile ZIP code 91304 has a population of 52,474, with 49.6% of residents being renters. The occupancy rate stands at 96.7%, indicating a highly competitive rental market with limited vacancies. Given the high proportion of renters and the low vacancy rate, it can be inferred that the market is tight, with many potential tenants competing for available units. The median household income of $90,070 suggests that the area attracts a mix of middle-class and upper-middle-class residents, but the high rental prices indicate that the majority of renters might struggle to find affordable housing options outside of government assistance programs like Section 8. #### Investor Angle From an investor perspective, participating in the Section 8 program in ZIP code 91304 would likely result in a cash-flow positive scenario if the investor can acquire properties at or below the FMR rates. However, given the high market prices, acquiring properties at these rates would be challenging. The FMR for a two-bedroom unit is $2670, while the market price is $437,467, leading to a significant gap between acquisition costs and rental income. To determine the investment grade, we need to consider the potential returns relative to the acquisition cost. Assuming a typical mortgage rate of around 5%, the monthly payment on a $437,467 property would be approximately $2,100, based on a 30-year fixed-rate mortgage. With an FMR of $2670, the net positive cash flow would be about $570 per month. However, this calculation does not account for other expenses such as maintenance, insurance, and property taxes, which could eat into the positive cash flow. Given the high acquisition costs and the relatively low FMR rates, the investment grade for Section 8 properties in this ZIP code would be considered moderate to low. Investors should carefully evaluate their risk tolerance and the overall financial health of the property before making a decision. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $2140, and for a zero-bedroom unit, it is $1910. These lower FMRs might provide a better balance between acquisition costs and rental income, potentially leading to a more positive cash flow. 2. **Consider Renovation Projects**: Investors might want to look for older or less desirable properties that could be renovated to meet modern standards. By investing in renovations, they could potentially increase the value of the property and improve its appeal to Section 8 tenants, while still maintaining a reasonable cash flow. 3. **Evaluate Long-Term Potential**: While the immediate cash flow might be modest, investors should consider the long-term potential of the ZIP code. If the area continues to grow and demand for rentals remains high, the value of the property could appreciate over time, providing additional returns beyond just rental income. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 91304 is to **Hold**. The high market prices and tight rental market make it difficult to acquire properties at a price that would yield a substantial positive cash flow when renting at FMR rates. However, the strong demand for rentals and the relatively high median income suggest that the area has good long-term potential. Investors should proceed with caution and carefully evaluate the financials of any potential investment, focusing on smaller units and considering renovation projects to enhance the property's value and appeal.

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.