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 91404, located within the Los Angeles-Long Beach-Glendale County area, are defined by the Specific Area Fair Market Rent (SAFMR) for a two-bedroom unit, which is set at $2540 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
To understand what a voucher actually pays, let's break down the components. The total rent for a two-bedroom apartment under Section 8 is capped at the SAFMR of $2540. However, the actual payment to the landlord consists of the difference between the SAFMR and the tenant's portion, plus any applicable utility allowances.
Tenants are generally required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income for a tenant in this program, the tenant would pay approximately $762 towards rent, based on the 30% rule. This figure can vary depending on the individual tenant's income level.
The utility allowance is an additional amount paid to the tenant to cover utilities, which is then subtracted from the total SAFMR to determine the landlord's reimbursement. For a two-bedroom unit, the utility allowance is typically around $300 per month. Thus, the landlord receives the remaining portion of the SAFMR after these deductions.
In ZIP 91404, the landlord would receive $2540 minus the tenant's contribution of $762, leaving $1778. Adding the utility allowance of $300, the total reimbursement to the landlord would be $2078 per month. This calculation provides a clear picture of the economic realities faced by landlords participating in the Section 8 program.
Given that the local market rent data is currently unavailable, it is difficult to provide a precise comparison. However, based on the SAFMR, landlords may find themselves receiving less than the market rate. In the case of a two-bedroom unit, there is a potential reimbursement gap of $462 per month, assuming the market rent aligns closely with the SAFMR. This gap represents the difference between the SAFMR and the actual reimbursement to the landlord.
In summary, landlords in ZIP 91404 should expect to receive $2078 per month for a two-bedroom unit when factoring in both the tenant's contribution and utility allowances. This setup ensures that the housing remains affordable for low-income tenants while providing a steady, though potentially below-market, income stream for landlords.
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.