Section 8 Fair Market Rent (FMR) for ZIP 91605 - 2027

Investment Score for ZIP 91605

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,970
1 Bedroom	$2,200
2 Bedrooms	$2,720
3 Bedrooms	$3,450
4 Bedrooms	$3,860
5 Bedrooms	$4,478
6 Bedrooms	$5,015
7 Bedrooms	$5,416
8 Bedrooms	$5,687

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,720	$693,267	0.39%	F
3BR	$3,450	$842,691	0.41%	F
4BR	$3,860	$934,373	0.41%	F
5BR	$4,478	$1,077,166	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91605 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91605 is set by HUD for 2026, with the following figures: - 0BR: $1740 - 1BR: $1950 - 2BR: $2430 - 3BR: $3080 - 4BR: $3430 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent in each unit type. However, the actual rents in the area significantly exceed these figures. For instance, the Zillow median price for a 2BR unit is $688,802, which translates to a monthly mortgage payment far above the FMR. The price-to-FMR ratio for a 2BR unit is 23.6x, indicating that the actual rental prices are much higher than the FMR. This creates a significant constraint for voucher holders, who may find it challenging to secure housing within their budget. Given that the median household income in 91605 is $65,481, the 2BR FMR of $2430 represents 44.5% of the median income, leaving little room for other expenses. This suggests that voucher holders are likely to face difficulties in finding affordable housing options that meet both their needs and the FMR limits. #### Affordability & Renter Profile ZIP code 91605 has a high percentage of renters, with 63.0% of households being renters. This indicates a strong demand for rental properties in the area. The occupancy rate of 92.3% further supports the notion that the market is tight, with few vacancies available. Given the high renter percentage and the tight market conditions, it is clear that many residents rely on rental housing. The median household income of $65,481 suggests that most renters are middle-income families or individuals. With the high price-to-FMR ratio, it is evident that the market is not particularly affordable for typical renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor’s perspective, the ZIP code 91605 presents a challenging scenario when considering cash flow at FMR levels. The FMR for a 2BR unit is $2430, while the median home value is $688,802. Assuming a mortgage rate of around 5%, the monthly mortgage payment for a 2BR property would be approximately $3500, which is well above the FMR. This means that landlords who rely solely on Section 8 vouchers would likely face negative cash flow, unless they can secure additional subsidies or have very low financing costs. Moreover, the investment grade in this ZIP code is likely to be lower due to the high cost of entry into the market. The price-to-FMR ratio of 23.6x indicates that the market is overpriced relative to the FMR, making it less attractive for investors focused on Section 8 properties. Investors might find it difficult to break even or generate a profit given the current pricing dynamics. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1740 and $1950 respectively), which could potentially align better with the actual rental prices in the area. This strategy might help mitigate some of the financial risks associated with larger units. 2. **Seek Additional Subsidies**: To make Section 8 investments viable, investors should explore opportunities for additional subsidies beyond the basic voucher. This could include state or local housing assistance programs that provide supplementary funding to cover the gap between FMR and actual rental prices. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 91605 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Additionally, the limited number of properties that fall within the FMR range and the high proportion of renters suggest that there is a significant mismatch between the demand for affordable housing and the supply of properties that can be rented out at FMR levels. Investors looking to enter this market should carefully consider alternative strategies or look at other ZIP codes where the FMR aligns more closely with actual rental prices.

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.