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 91333, which falls within the Los Angeles-Long Beach-Glendale County area, are straightforward when analyzed with specific figures. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $2540 for the fiscal year 2024. This figure is crucial because it determines the maximum amount that the government will reimburse landlords for eligible units under the program.
A voucher holder is required to pay 30% of their adjusted income toward rent. For simplicity, let's assume the average adjusted income of a voucher holder is $1693 per month, which would mean they pay approximately $508 towards rent. This amount is deducted from the total SAFMR, leaving the government to cover the remaining balance. In addition to the rent, there are utility allowances that vary but typically do not exceed $300 per month for a two-bedroom unit.
To walk through an example, if a voucher holder's contribution is $508 and the utility allowance is $300, then the total reimbursement from the government would be $2540 - $508 = $2032. This sum does not include the utility allowance, which is paid directly to the tenant. Therefore, the landlord receives $2032 from the government and the tenant contributes $508, making the total rental income $2540.
The SAFMR is set specifically for this ZIP code, meaning that it reflects the fair market conditions unique to ZIP 91333. This localized approach aims to ensure that the reimbursement rates are realistic and competitive within the local rental market. However, without specific local market rent data, it is challenging to compare the SAFMR to the actual market rates.
In conclusion, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 91333 can be calculated based on the SAFMR and the tenant's contribution. Given the SAFMR of $2540 and assuming the average tenant contribution of $508, the government reimbursement leaves a surplus of $2032 for the landlord. This surplus is the amount that exceeds the tenant's direct payment, ensuring that landlords receive a stable and predictable income from Section 8 tenants.
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.