Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| 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 purchasing property in ZIP code 91603 for Section 8 investment is advisable, follow this decision tree:
Step 1: Evaluate the Fair Market Rent (FMR) of $2540 for ZIP 91603 in fiscal year 2024. This figure must cover the debt service on the property you're considering. Since the property's value and associated debt service are not provided, you cannot definitively answer whether the FMR will clear the debt service. However, if your property's debt service is lower than $2540, then the answer is yes; otherwise, it is no.
Step 2: Compare the FMR to the market rent. Without specific data on the average market rent in 91603, it is impossible to make this comparison. If the market rent is higher than $2540, landlords can expect a positive spread between market rents and Section 8 rents. If it is equal to $2540, there is no premium to be gained over Section 8 rates. If the market rent is below $2540, landlords might consider alternative investments that offer better returns.
Step 3: Assess the demand for rental properties. The percentage of renters and the days on market (DOM) are key indicators. If the percentage of renters is high and the DOM is low, indicating strong demand, then the answer is yes. Conversely, if the percentage of renters is low and the DOM is high, suggesting weak demand, the answer is no. If these figures fall somewhere in the middle, the answer is it depends, and you'll need to conduct further analysis on local vacancy rates and competition.
Note: Due to the lack of specific data points such as the property's value, market rent, percentage of renters, and DOM, the final decision will heavily rely on filling in these blanks with actual numbers from your research.
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.