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 | $1,980 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,460 |
| 4 Bedrooms | $3,880 |
| 5 Bedrooms | $4,501 |
| 6 Bedrooms | $5,041 |
| 7 Bedrooms | $5,444 |
| 8 Bedrooms | $5,716 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,210 | $333,894 | 0.66% | D |
| 2BR | $2,730 | $539,034 | 0.51% | F |
| 3BR | $3,460 | $714,277 | 0.48% | F |
| 4BR | $3,880 | $811,718 | 0.48% | F |
| 5BR | $4,501 | $927,481 | 0.49% | F |
U.S. Census Bureau data (2024)
Sherman Oaks, largely defined by ZIP 91402, is a dynamic and densely populated San Fernando Valley neighborhood characterized by a mix of mid-century apartments and suburban single-family homes. The area offers convenient access to major transportation arteries, including the 405 and 101 freeways, which makes it a practical hub for commuters working across Los Angeles. While the retail landscape is dominated by the expansive Westfield Fashion Square mall, providing significant local employment and shopping amenities, the neighborhood also maintains quieter residential blocks that appeal to long-term renters.
From a quantitative perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit stands at $2,360, while current market rents (Zillow ZORI) lag slightly at $2,243. This creates a negative gap of $117, meaning standard voucher payments technically exceed the going market rate, though the difference is marginal. Real estate investors face a median home value of $707,039, with properties sitting on the market for a median of 67 days. This days-on-market figure suggests a moderate pace of turnover, requiring investors to account for potential vacancy periods during underwriting.
With a renter share of 66.4% and a median household income of $57,369, the tenant pool is substantial yet income-constrained, creating natural demand for housing assistance programs. The local public schools generally maintain average to above-average ratings, which helps sustain family retention in the area. For voucher holders, the neighborhood's walkable districts and proximity to major transit lines add significant value, making units here attractive even when the rent premium is tight compared to the broader market.
The Section 8 verdict for 91402 leans toward stability and appreciation rather than aggressive immediate cashflow. Because the HUD 2BR FMR of $2,360 slightly outperforms the $2,243 market rent, investors can rely on consistent government-subsidized payments without significantly overpricing the asset relative to neighbors. High barriers to entry, evidenced by the $707,039 median home value, suggest long-term appreciation potential. Therefore, the strongest angle here is acquiring assets in a high-renter-density area where government guarantees provide a shield against local income fluctuations.
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.