Section 8 Fair Market Rent (FMR) for ZIP 91306 - 2027

Investment Score for ZIP 91306

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	$2,120
1 Bedroom	$2,370
2 Bedrooms	$2,920
3 Bedrooms	$3,700
4 Bedrooms	$4,150
5 Bedrooms	$4,814
6 Bedrooms	$5,392
7 Bedrooms	$5,823
8 Bedrooms	$6,114

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	$2,370	$346,993	0.68%	D
2BR	$2,920	$498,533	0.59%	F
3BR	$3,700	$805,981	0.46%	F
4BR	$4,150	$875,157	0.47%	F
5BR	$4,814	$1,000,711	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91306 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91306 in 2026 is set at $2390 for a two-bedroom unit. This figure represents 30.8% of the median household income of $93,151. However, the actual rental market in this area is significantly higher. According to Zillow, the median price for a two-bedroom home in this ZIP code is $506,940, which translates to a price-to-FMR ratio of 17.7x. This means that the actual market rent for a two-bedroom property is likely much higher than the FMR, creating a significant constraint for Section 8 voucher holders. They would struggle to find units within their budget, especially given the high occupancy rate of 96.1%, indicating a very tight rental market. #### Affordability & Renter Profile ZIP code 91306 has a population of 47,176, with 43.7% of residents being renters. The median household income is $93,151, suggesting that the majority of residents have above-average incomes for the region. Despite this, the high cost of living and housing in Los Angeles makes it challenging for many to afford market-rate rentals. Given the high occupancy rate and the fact that the median rent for a two-bedroom unit is nearly 18 times the FMR, the rental market is extremely tight. This implies that there is strong demand for rental properties, but the supply is limited, particularly for affordable units. #### Investor Angle From an investor perspective, the ZIP code 91306 presents both opportunities and challenges. While the high occupancy rate suggests strong demand, the disparity between the FMR and the actual market rent indicates that cash flow from Section 8 vouchers alone may be insufficient to cover the costs of owning and maintaining a property. For instance, a two-bedroom unit with a market rent of $506,940 would typically command a monthly rent far exceeding the $2390 FMR. This makes it difficult for landlords to rely solely on Section 8 vouchers for profitability. However, the investment grade can still be considered favorable due to the strong overall demand for rental properties. Investors might consider a mixed strategy where they accept Section 8 vouchers for some units while renting others at market rates. This approach could help balance the lower cash flow from subsidized units with higher revenue from market-rate rentals. #### Specific Actionable Insights 1. **Mixed Rental Strategy**: Investors should consider a mixed rental strategy where they accept Section 8 vouchers for a portion of their units while renting others at market rates. This can help mitigate the financial impact of lower rents from subsidized units. For example, if an investor owns a multi-unit building, they could allocate a few units for Section 8 tenants and the rest for market-rate renters. 2. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as studios and one-bedroom apartments might be more attractive to Section 8 voucher holders. The FMR for a one-bedroom unit is $1920, which is still significantly below the market rate. By focusing on smaller units, investors can potentially fill vacancies faster and maintain a steady cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 91306 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow purely from Section 8 vouchers. While there is strong demand for rental properties, the limited availability of affordable units and the high cost of living suggest that relying solely on Section 8 subsidies would not be financially viable. Investors looking to enter this market should consider alternative strategies or focus on areas with a more favorable price-to-FMR ratio.

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.