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 91309, located within the Los Angeles-Long Beach-Glendale County area, are defined by the Specific Area Fair Market Rent (SAFMR) which is set at $2540 for a two-bedroom apartment for the fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting the unique housing costs and conditions present here.
When a landlord participates in the Section 8 program, the payment they receive comes from a combination of the tenant's contribution and the government subsidy. Tenants are required to pay 30% of their adjusted income towards rent. For simplicity, let's assume a tenant's adjusted income is $2000 per month. In this case, the tenant would contribute $600 towards the rent ($2000 * 0.30).
The remaining amount is subsidized by the government, up to the SAFMR limit. So, for a two-bedroom apartment, the government would cover $1940 ($2540 - $600). However, it's important to note that the government also provides an additional utility allowance, which can vary but is typically around $200 for a two-bedroom unit. This brings the total government subsidy to approximately $2140 per month.
In summary, if you're a landlord renting out a two-bedroom apartment in ZIP 91309 under the Section 8 program, you will receive a total of $2740 per month ($600 from the tenant + $2140 from the government). This amount is based on the assumption that the tenant's income is low enough that the SAFMR is reached, and it includes the utility allowance.
The SAFMR of $2540 is the maximum rent allowed under the program, meaning that even if the local market rent were higher, the landlord would still only be reimbursed up to this amount. Given that the local market rent data is currently unavailable, we cannot provide a direct comparison. However, if the market rent exceeds the SAFMR, landlords might experience a reimbursement gap, where they receive less than the market value for their property. Conversely, if the market rent is lower than the SAFMR, landlords could see a surplus, receiving more than what they would typically charge.
Based on the SAFMR and assuming a tenant's adjusted income of $2000, the typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 91309 would be a surplus of $200 per month, as the total reimbursement ($2740) exceeds the SAFMR ($2540) by this amount. This surplus is due to the inclusion of the utility allowance in the total subsidy.
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.