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 | $2,530 |
| 1 Bedroom | $2,820 |
| 2 Bedrooms | $3,480 |
| 3 Bedrooms | $4,420 |
| 4 Bedrooms | $4,940 |
| 5 Bedrooms | $5,730 |
| 6 Bedrooms | $6,418 |
| 7 Bedrooms | $6,931 |
| 8 Bedrooms | $7,278 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,480 | $762,899 | 0.46% | F |
| 3BR | $4,420 | $1,314,017 | 0.34% | F |
| 4BR | $4,940 | $1,896,185 | 0.26% | F |
| 5BR | $5,730 | $2,270,811 | 0.25% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 91501 in Burbank, CA, are significant. Firstly, the market rent stands at $2,833, while the Fair Market Rent (FMR) for FY 2024 is set at $2,850. This slight discrepancy can lead to higher tenant turnover if landlords do not adjust their rents accordingly to attract tenants willing to pay the FMR. Secondly, the vacancy exposure is considerable due to the lack of data on days on market (DOM), which suggests that landlords might face extended periods without tenants, leading to financial strain.
A third critical risk factor is deferred maintenance. With a typical home value of $1,248,227 and a median income of $91,936, homeowners may struggle to maintain their properties adequately, especially when relying on fixed incomes from rental units. This can result in higher maintenance costs and potential structural issues for landlords who must then bear the brunt of these expenses.
However, these risks are tempered by the high renter density in the area. The renter share of the population is 57.9%, indicating a robust demand for rental properties. This high concentration of renters often translates into a greater number of Section 8 vouchers being utilized in the area, making it easier for landlords to find qualified tenants.
In conclusion, despite the challenges posed by potential tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 91501 suggests that there is ample opportunity for Section 8 tenants. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.