Section 8 Fair Market Rent (FMR) for ZIP 91408 - 2027
Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
To determine if you should invest in ZIP code 91408 for Section 8 properties, follow these steps:
- Step 1: Does the Fair Market Rent (FMR) of $2540 cover your debt service?
- Yes. If the FMR can cover the total monthly mortgage payment including principal, interest, taxes, and insurance, then it's a viable option. This means the rental income from a Section 8 tenant would be sufficient to meet financial obligations.
- No. If the FMR does not cover your debt service, purchasing a property in 91408 for Section 8 tenants is not advisable. The rental income would fall short of covering the monthly expenses.
- Step 2: Is the market rent above, at, or below the FMR?
- Above FMR. If the market rent exceeds $2540, you might consider other investment opportunities where you can receive higher rents from non-Section 8 tenants. However, this does not automatically disqualify 91408; it depends on your investment goals.
- At FMR. If the market rent is exactly $2540, you can expect stable rental income from Section 8 tenants. This scenario aligns well with the first step's positive outcome.
- Below FMR. If the market rent is less than $2540, Section 8 properties become more attractive as they offer a guaranteed income floor. This is particularly useful in areas where vacancy rates are high and market rents are unpredictable.
- Step 3: Do the number of renters and days on market indicate sufficient demand?
- It depends. Without specific percentages and DOM figures, it's challenging to give a definitive answer. Generally, a higher percentage of renters and lower days on market suggest strong demand. If the data shows that most units are rented out quickly, this indicates a healthy market for Section 8 properties.
The decision ultimately hinges on whether the FMR can support your financial needs and if the local rental market dynamics favor Section 8 investments over market-rate rentals. Ensure you have accurate local data before making any investment decisions.
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.