Section 8 Fair Market Rent (FMR) for ZIP 91716 - 2027
Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| 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 |
The decision to invest in ZIP 91716 for Section 8 properties hinges on several key factors.
1) Does the Fair Market Rent (FMR) of $2540 cover the debt service on a property?
- Yes: If the debt service on your property is less than $2540, then the FMR will cover it. Proceed to the next question.
- No: If the debt service exceeds $2540, investing in this ZIP code under Section 8 is not financially viable. Do not proceed.
- It Depends: Without specific property cost details, it's impossible to definitively answer. Calculate your expected debt service and compare against the FMR.
2) How does the market rent compare to the FMR?
- Above: If market rents are higher than $2540, landlords might prefer market-rate tenants over Section 8. This makes it harder to justify a Section 8 investment.
- At: If market rents are around $2540, landlords are indifferent between market-rate and Section 8 tenants. This scenario supports a Section 8 investment.
- Below: If market rents are lower than $2540, landlords may find Section 8 more attractive. However, without exact figures, this advantage is speculative.
3) Is there sufficient demand from renters?
- Yes: If the percentage of renters and days on the market (DOM) indicate strong demand, landlords can expect steady occupancy. This supports a positive outlook for Section 8 investments.
- No: If the percentage of renters is low and DOM is high, demand is weak. This makes it challenging to fill Section 8 units.
- It Depends: The exact percentages of renters and DOM are required to make a definitive judgment. Analyze local rental trends to determine if there is enough demand.
To conclude, a landlord should only consider purchasing in ZIP 91716 for Section 8 if the FMR of $2540 sufficiently covers their debt service, market rents are either at or below FMR, and there is adequate tenant demand. Without precise market rent and demand data, the final decision remains conditional upon these calculations.
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.