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 | $2,730 |
| 1 Bedroom | $3,050 |
| 2 Bedrooms | $3,760 |
| 3 Bedrooms | $4,770 |
| 4 Bedrooms | $5,340 |
| 5 Bedrooms | $6,194 |
| 6 Bedrooms | $6,937 |
| 7 Bedrooms | $7,492 |
| 8 Bedrooms | $7,867 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,050 | $465,922 | 0.65% | D |
| 2BR | $3,760 | $726,836 | 0.52% | F |
| 3BR | $4,770 | $1,228,614 | 0.39% | F |
| 4BR | $5,340 | $2,131,851 | 0.25% | F |
| 5BR | $6,194 | $3,469,269 | 0.18% | F |
U.S. Census Bureau data (2024)
ZIP 91602, located in the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 91602 in fiscal year 2024 is set at $3190, which is significantly higher than the market rent of $2,820. This $370 spread represents a positive cash flow opportunity for landlords who can leverage the higher FMR rates to cover costs and generate profit.
The median home value in ZIP 91602 is $1,062,077, indicating that the area is relatively expensive compared to other parts of the country. However, the median income of $102,914 suggests that residents have the financial capacity to afford these high property values, making it a stable location for investment.
While the 0.2% price-cut share and N/A-day Days on Market (DOM) indicate that the market is highly competitive and properties sell quickly, these factors do not directly impact the rental dynamics under Section 8. Instead, they point towards a robust real estate market where appreciation might be possible, but the primary focus should remain on the steady cash flow provided by the Section 8 program.
The renter share in ZIP 91602 stands at 66.7%, suggesting a strong demand for rental properties. This high percentage of renters aligns well with the Section 8 program, which aims to provide affordable housing options to low-income families. Landlords can benefit from the consistent demand and the guaranteed payment structure of the Section 8 vouchers.
In summary, ZIP 91602 is best positioned as a cash-flow anchor in a Section 8 portfolio due to the favorable spread between the FMR and market rent, coupled with a high renter share and median income levels that support long-term stability. This makes it a reliable choice for generating predictable returns and managing risk.
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.