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 | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,450 | $1,097,665 | 0.41% | F |
| 3BR | $5,650 | $1,652,627 | 0.34% | F |
| 4BR | $6,320 | $2,314,216 | 0.27% | F |
| 5BR | $7,331 | $3,209,250 | 0.23% | F |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP 91436 (Los Angeles, CA) for Section 8 properties, follow this decision tree based on the data provided:
1) Does FMR $3820 (zip FY 2024) clear debt service on a $2,238,220 property?
No. The Fair Market Rent (FMR) of $3820 does not cover the typical debt service costs associated with a property valued at $2,238,220. Debt service, which includes principal and interest payments on a mortgage, typically exceeds this amount, especially in high-cost areas like Los Angeles.
2) Is market rent $4,887 (ZORI) above, at, or below FMR?
Above. The Zillow Observed Rent Index (ZORI) of $4,887 is significantly higher than the FMR of $3820. This indicates that the market rent is well above what would be covered by Section 8 vouchers, suggesting a potential mismatch between voucher amounts and rental costs.
3) Are 21.3% renters + N/A-day days on market (DOM) enough demand?
It depends. With 21.3% of the population renting, there is a notable portion of the market that could potentially be served by Section 8 tenants. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly rental units are occupied. A low DOM would indicate strong demand, while a high DOM suggests otherwise.
If you have determined that the FMR does not clear debt service, then purchasing a property in ZIP 91436 for Section 8 is not advisable. Even if the market rent is above the FMR, the financial viability of the investment hinges on covering debt service costs. If the FMR were sufficient to cover debt service, the next step is to evaluate the relationship between market rent and FMR. If market rent is above FMR, as in this case, the property may struggle to attract Section 8 tenants due to the discrepancy in rent levels. If the market rent were at or below FMR, it would be more favorable for Section 8 rentals.
The final consideration is demand. With 21.3% of the population renting, there is a substantial pool of potential tenants. However, without knowing the DOM, it's impossible to make a definitive recommendation. If DOM is low, indicating quick occupancy, then demand is likely sufficient. Conversely, if DOM is high, the investment might face challenges in finding and retaining tenants.
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.