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 potential risks for investing in Section 8 properties in ZIP code 91305, located in California, are significant and should be carefully considered. Firstly, tenant turnover could pose a challenge due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $2540 for FY 2024. This difference suggests that landlords might face difficulties retaining tenants who prefer market-rate housing over government-subsidized options.
Vacancy exposure is another critical concern. With an unknown number of days on the market (DOM), it's unclear how quickly properties can be rented out, which could lead to extended periods without rental income. This uncertainty is compounded by the lack of data on the typical home value and median income in the area, making it difficult to assess the financial health of potential tenants and the overall maintenance needs of the property.
Despite these risks, there is a silver lining. The high renter share in the area indicates strong demand for rental housing, which often translates into higher demand for Section 8 vouchers. This demand can provide a steady stream of tenants willing to use their vouchers, thus mitigating some of the vacancy risks.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.