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 | $2,080 |
| 1 Bedroom | $2,320 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,320 | $488,972 | 0.47% | F |
| 2BR | $2,860 | $583,933 | 0.49% | F |
| 3BR | $3,630 | $773,877 | 0.47% | F |
| 4BR | $4,060 | $855,856 | 0.47% | F |
| 5BR | $4,710 | $946,594 | 0.5% | F |
U.S. Census Bureau data (2024)
Los Angeles ZIP code 91342, primarily encompassing the Sylmar neighborhood, offers a distinct suburban atmosphere within the San Fernando Valley, characterized by a mix of residential tracts and industrial zones. The area maintains a strong identity through major institutions like the Olive View-UCLA Medical Center, a significant employer and healthcare anchor for the region. Local regulations fall under the broader Los Angeles city framework, where landlords must navigate the city’s Rent Stabilization Ordinance (RSO) for qualifying pre-1978 buildings, while newer construction operates with fewer restrictions. The neighborhood features a blend of single-family homes and multi-unit rentals, with access to recreational amenities such as the nearby Angeles National Forest foothills.
From a financial perspective, the HUD Payment Standard for a 2-bedroom unit in FY2024 is set at $2,360. When compared to the current market rent of $2,566 (Zillow ZORI), there is a negative spread of $206, meaning landlords accepting vouchers may need to adjust rents downward to meet the cap. The broader Fair Market Rent (FMR) ladder for FY2026 projects a 2BR rate of $2,440. With a median home value of $805,430 and a median 2BR sale price of $596,085, acquisition costs are substantial. Properties here sit on the market for a median of 51 days, indicating moderate turnover speed rather than rapid fire sales.
Demand is supported by a solid demographic base, where the median household income is $98,118 and the renter share is 32.2%. This income level suggests that while many residents can afford market rates, there is still a significant population segment for whom the $2,440 FMR ceiling represents a stable housing solution. The local tenant pool benefits from proximity to major freeways like the I-5 and I-210, which facilitates commutes to broader economic hubs in Los Angeles County. The presence of top-rated public schools, such as Sylmar Elementary and Sylmar Charter High School, further stabilizes family housing demand.
The Section 8 verdict for 91342 leans toward stability and appreciation rather than immediate aggressive cash flow. Because the 2BR market rent exceeds the FY2024 SAFMR, investors banking solely on voucher premiums might find the gap challenging. However, the high median home value and strong local employment anchors suggest that real estate here is a long-term hold. For small-portfolio investors, the strategy should focus on properties that are exempt from strict RSO limits, allowing rents to rise closer to the market rate of $2,566, while using the voucher program to minimize vacancy risk.
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.