Section 8 Fair Market Rent (FMR) for ZIP 91405 - 2027

Investment Score for ZIP 91405

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,170
1 Bedroom	$2,420
2 Bedrooms	$2,990
3 Bedrooms	$3,790
4 Bedrooms	$4,240
5 Bedrooms	$4,918
6 Bedrooms	$5,508
7 Bedrooms	$5,949
8 Bedrooms	$6,246

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,990	$537,567	0.56%	F
3BR	$3,790	$858,915	0.44%	F
4BR	$4,240	$955,019	0.44%	F
5BR	$4,918	$1,099,837	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91405 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91405 in Los Angeles, CA, as of 2026, is set at $2,590 for a two-bedroom unit. This amount represents 49.4% of the median household income in the area, which is $62,900. However, the actual rent for a two-bedroom unit on Zillow is significantly higher at $548,612, leading to a price-to-FMR ratio of 17.7x. This means that the actual rental prices are far above what the FMR suggests, creating a significant constraint for Section 8 voucher holders. The voucher amount may not cover the actual rent, especially for units that are priced at market rates. Consequently, tenants using Section 8 vouchers might struggle to find affordable housing within the ZIP code, as landlords are unlikely to accept vouchers that do not match the market value of their properties. #### Affordability & Renter Profile ZIP code 91405 has a high occupancy rate of 94.6%, indicating that the housing market is tight and there is little vacancy. With 72.7% of the population being renters, it is clear that the majority of residents rely on rental housing. Given the median household income of $62,900, the high cost of living and the disparity between FMR and actual rents suggest that many residents face affordability challenges. The median rent for a two-bedroom unit being $548,612 is nearly double the FMR, making it difficult for low-income households to afford housing without substantial subsidies. Therefore, the market is highly competitive, and the demand for affordable housing is likely to be very strong. #### Investor Angle From an investor perspective, the ZIP code 91405 presents a challenging scenario when considering cash flow based solely on FMR. The FMR for a two-bedroom unit is $2,590, while the actual median rent is $548,612. This discrepancy indicates that relying on FMR alone would result in negative cash flow for most investment properties. The high price-to-FMR ratio of 17.7x suggests that the market is overpriced relative to the FMR guidelines, making it less attractive for investors focused on Section 8 properties. In terms of investment grade, given the tight market conditions and high rent-to-income ratios, the ZIP code would be considered a speculative investment. While there is a strong demand for rental properties, the reliance on market-rate rents rather than FMR makes it risky for those who depend on Section 8 vouchers for their investment strategy. Investors should consider the broader economic context and potential changes in rent control policies or other regulations that could impact profitability. #### Specific Actionable Insights 1. **Focus on Below-Market-Rate Properties**: Investors should seek out properties that are priced below the market rate but still within the range of FMR. For example, a two-bedroom unit priced at $3,000 per month would be more likely to attract Section 8 tenants compared to one priced at $548,612. This approach can help mitigate the risk of negative cash flow. 2. **Consider Renovation Projects**: Investing in properties that require renovation can be a strategic move. By acquiring units at a lower price and then renovating them to increase their value, investors can potentially achieve a better balance between FMR and market rates. For instance, a property purchased at $2,500 per month and renovated to a slightly higher value of $3,500 could still be within reach for some Section 8 tenants, especially if the renovations improve the overall quality of the unit. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors in ZIP code 91405 is to **Skip**. The actual rents are far above the FMR, making it difficult for voucher holders to find suitable housing. Additionally, the high market rates indicate that cash flow will likely be negative if investors rely solely on FMR guidelines. Investors should look for areas where the FMR is closer to the actual market rents or consider alternative investment strategies that do not solely depend on Section 8 vouchers.

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.