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 | $2,210 |
| 1 Bedroom | $2,460 |
| 2 Bedrooms | $3,040 |
| 3 Bedrooms | $3,860 |
| 4 Bedrooms | $4,320 |
| 5 Bedrooms | $5,011 |
| 6 Bedrooms | $5,612 |
| 7 Bedrooms | $6,061 |
| 8 Bedrooms | $6,364 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,040 | $658,642 | 0.46% | F |
| 3BR | $3,860 | $808,131 | 0.48% | F |
| 4BR | $4,320 | $862,087 | 0.5% | F |
| 5BR | $5,011 | $954,214 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 91345, located in Los Angeles, CA, must be carefully considered. Firstly, tenant turnover is a significant concern. The market rent stands at $2,598, while the Fair Market Rent (FMR) for fiscal year 2024 is set at $2,820. This discrepancy can lead to higher turnover rates as tenants seek properties that match their voucher amounts, resulting in increased management costs and operational disruptions.
Vacancy exposure is another issue, especially since the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant between tenancies, which can negatively impact cash flow and profitability. Additionally, the deferred-maintenance exposure is noteworthy. With a typical home value of $829,363 and a median income of $94,215, there's a considerable gap that may necessitate landlords to cover maintenance and repair costs out of pocket, further straining finances.
However, these risks are tempered by the high concentration of renters in the area. The renter share is 30.6%, indicating a robust demand for rental properties. This high density of renters often translates into greater interest in Section 8 vouchers, providing a steady stream of qualified tenants. The strong demand can help mitigate some of the financial risks associated with tenant turnover and vacancy periods.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 91345 is moderate.
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.