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 | $1,970 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,440 |
| 4 Bedrooms | $3,850 |
| 5 Bedrooms | $4,466 |
| 6 Bedrooms | $5,002 |
| 7 Bedrooms | $5,402 |
| 8 Bedrooms | $5,672 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,200 | $456,425 | 0.48% | F |
| 2BR | $2,710 | $630,594 | 0.43% | F |
| 3BR | $3,440 | $732,047 | 0.47% | F |
| 4BR | $3,850 | $772,212 | 0.5% | F |
| 5BR | $4,466 | $839,940 | 0.53% | F |
U.S. Census Bureau data (2024)
Los Angeles 91331, encompassing the Pacoima neighborhood, is a densely populated, predominantly Latino community in the San Fernando Valley known for its strong industrial presence and working-class character. The area features a mix of residential single-family homes and substantial commercial zones, with major employers like the Whiteman Airport and various logistics firms driving the local economy. Recent revitalization efforts have focused on improving public parks and enhancing pedestrian safety along major corridors such as Van Nuys Boulevard, contributing to a gradual shift in neighborhood stability.
Financially, the market presents a distinct spread between Section 8 guarantees and private market realities. The FY2026 Fair Market Rent for a 2-bedroom unit stands at $2,310, while Zillow’s current market rent estimate is $2,094. This results in a premium gap of $216 per month in favor of voucher holders, offering a cushion above market rates. Median home values sit at $744,600, with a median 2BR sale price of $647,355, and properties typically linger on the market for 56 days.
Despite a median household income of $84,227, the 37.6% renter share indicates a significant tenant base that may rely on housing assistance. Demand is bolstered by the neighborhood’s transit connectivity, including the Pacoima Metro Orange Line station, which facilitates access to broader Los Angeles employment hubs. The area’s established school system and ongoing community development projects further enhance its appeal to families seeking long-term housing stability.
The verdict for 91331 is a clear opportunity for cash flow stability via the Section 8 program. Because the HUD payment standard ($2,310) exceeds the going market rate ($2,094), investors can secure guaranteed payments that are higher than typical street rents. This dynamic, combined with a moderate median sales price for two-bedroom homes, suggests that acquiring properties here with vouchers can yield immediate positive leverage and reduced vacancy risk compared to market-rate rentals.
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.