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 | $2,610 |
| 1 Bedroom | $2,910 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,550 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,910 | $494,766 | 0.59% | F |
| 2BR | $3,590 | $733,694 | 0.49% | F |
| 3BR | $4,550 | $1,521,432 | 0.3% | F |
| 4BR | $5,100 | $2,067,989 | 0.25% | F |
| 5BR | $5,916 | $3,074,673 | 0.19% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 91423, located in Los Angeles, CA, within Los Angeles County, are driven by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $3150. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent in this particular area.
However, it's important to note that the actual market rent for a two-bedroom apartment in ZIP 91423 is currently at $2,787 according to ZORI (Zillow Observed Rental Index). This indicates that the SAFMR is above the local market rent, providing a buffer for landlords.
A landlord participating in the Section 8 program should understand the reimbursement structure. The voucher pays the difference between the tenant’s portion and the total rent. Tenants are generally expected to contribute 30% of their adjusted income toward rent. In addition, there are utility allowances that can vary but typically do not cover the full cost of utilities. Therefore, if a tenant's portion is calculated based on their income, the voucher will cover the remaining balance up to the SAFMR of $3150.
To illustrate, let's assume a tenant contributes $800 towards rent. The voucher would then cover the remaining $2350, ensuring the landlord receives the full SAFMR of $3150. This means landlords in ZIP 91423 could potentially receive more than the average market rent when renting to tenants with vouchers.
The typical reimbursement gap or surplus in this scenario would be a surplus. Given the local market rent of $2,787, the surplus would be approximately $363 per month for a two-bedroom unit. This surplus allows landlords to charge slightly above the market rate without losing potential tenants who have vouchers.
In conclusion, landlords in ZIP 91423 can expect the Section 8 program to provide a stable income source that exceeds the local market rent. This makes participating in the program financially beneficial for landlords and helps ensure that rental properties remain competitive while adhering to the guidelines set by the Housing Choice Voucher program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.