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 | $2,940 |
| 1 Bedroom | $3,280 |
| 2 Bedrooms | $4,050 |
| 3 Bedrooms | $5,140 |
| 4 Bedrooms | $5,750 |
| 5 Bedrooms | $6,670 |
| 6 Bedrooms | $7,470 |
| 7 Bedrooms | $8,068 |
| 8 Bedrooms | $8,471 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,280 | $449,870 | 0.73% | D |
| 2BR | $4,050 | $685,750 | 0.59% | F |
| 3BR | $5,140 | $1,531,284 | 0.34% | F |
| 4BR | $5,750 | $2,123,447 | 0.27% | F |
| 5BR | $6,670 | $2,640,678 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 91403, located in Los Angeles, CA, is an ideal candidate for inclusion in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 91403 in fiscal year 2024 is set at $3390, significantly higher than the market average rent of $2874. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to the typical market rates, thus providing a steady and reliable cash flow.
Furthermore, the median home value in ZIP 91403 stands at $1,476,420. While this high median home value might suggest a robust housing market, the discrepancy between the FMR and the market rent indicates that there is a segment of the population that cannot afford market rates but can benefit from subsidized housing through Section 8 vouchers. This makes ZIP 91403 particularly attractive for landlords looking to secure tenants who will consistently pay their rent through government assistance.
ZIP 91403 also has a 55.3% renter share, which means that over half of the households in this area are renters. This high percentage of renters supports the idea that this ZIP code could serve as a diversifier within a broader investment portfolio. However, given the significant spread between the FMR and the market rent, the primary role of ZIP 91403 in a Section 8 portfolio should be as a cash-flow anchor. Landlords can leverage this to ensure a consistent income stream, especially since the median income in the area is $116,170, suggesting that while many residents may require rental assistance, the overall economic conditions are favorable.
The 0.2% price-cut share and N/A-day Days on Market (DOM) indicate that the rental market in ZIP 91403 is stable, with little need for price adjustments or extended vacancy periods. This stability further reinforces the suitability of ZIP 91403 as a cash-flow anchor, as it minimizes the risks associated with fluctuating rental incomes and prolonged vacancies.
In conclusion, ZIP 91403 fits best into a Section 8 portfolio strategy as a cash-flow anchor due to its higher FMR relative to market rents, high median home value, and stable rental market conditions. These factors ensure that landlords can maintain a predictable and steady income stream from properties in this area, making it a valuable component of any investment strategy focused on long-term financial security and reliability.
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.