Section 8 Fair Market Rent (FMR) for ZIP 91732 - 2027

Investment Score for ZIP 91732

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	$1,950
1 Bedroom	$2,180
2 Bedrooms	$2,690
3 Bedrooms	$3,410
4 Bedrooms	$3,820
5 Bedrooms	$4,431
6 Bedrooms	$4,963
7 Bedrooms	$5,360
8 Bedrooms	$5,628

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
1BR	$2,180	$488,896	0.45%	F
2BR	$2,690	$670,495	0.4%	F
3BR	$3,410	$732,692	0.47%	F
4BR	$3,820	$839,418	0.46%	F
5BR	$4,431	$1,003,609	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91732 (El Monte, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91732, as per the 2026 data, is set at $2320 for a two-bedroom unit. This represents 37.1% of the median household income in El Monte, which stands at $75,108. However, the actual rental market in El Monte is significantly higher, with the Zillow median price for a two-bedroom unit being $674,169. The price-to-FMR ratio of 24.2x indicates that the actual rent prices far exceed the FMR guidelines. For instance, a typical two-bedroom unit could cost around $2,800-$3,200 per month, which is well above the $2320 FMR limit. This means that voucher holders face significant constraints in finding affordable housing within the ZIP code, as landlords may be unwilling to accept vouchers due to the lower rent they can charge compared to the market rate. #### Affordability & Renter Profile El Monte has a high percentage of renters at 56.8%, indicating a strong demand for rental properties. The occupancy rate of 97.0% suggests that the rental market is quite tight, with few vacancies available. Given the median household income of $75,108, the affordability of housing is a critical issue for many residents. With the FMR for a two-bedroom unit being only $2320, which is less than half of what the market typically charges, renters, especially those relying on Section 8 vouchers, struggle to find suitable housing. This tight market condition implies that there is little oversupply, and the demand for rental units is consistently high. #### Investor Angle From an investor's perspective, the ZIP code 91732 presents a challenging scenario. The FMR for a two-bedroom unit is $2320, but the actual market rent is likely much higher, potentially around $2,800-$3,200. This means that if an investor were to purchase a property at the Zillow median price of $674,169 and attempt to rent it out at the FMR, they would likely incur a loss. To illustrate, let’s assume a conservative monthly mortgage payment of $2,500 based on a 30-year fixed-rate mortgage at a 5% interest rate. Even without factoring in maintenance costs, property taxes, and insurance, the FMR of $2320 would result in a negative cash flow of $180 per month. Therefore, the ZIP code is not cash-flow positive at FMR, making it a risky investment for those strictly adhering to FMR guidelines. #### Investment Grade Given the high market rent relative to FMR and the tight rental market, the investment grade for El Monte is low for Section 8-focused investors. The disparity between the FMR and market rent makes it difficult for investors to achieve positive cash flow while accepting Section 8 vouchers. Additionally, the high demand for rental properties might lead to increased competition among landlords, further complicating the ability to attract tenants who use Section 8 vouchers. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are closer to the FMR levels. For example, one-bedroom units with an FMR of $1860 might be more feasible for positive cash flow. This strategy requires careful selection of properties in areas where market rents are closer to FMR. 2. **Consider Multi-Family Units**: Given the high rent-to-FMR ratio, investing in multi-family units could provide a better opportunity. For instance, a four-bedroom unit with an FMR of $3280 might still be below market rates but could accommodate larger families or be split into multiple smaller units, thus increasing the potential for positive cash flow. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help navigate the complexities of Section 8 vouchers. Understanding the local policies and preferences can provide insights into how to structure deals that are acceptable to both tenants and landlords. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 91732 is to **Skip** this market. The significant gap between FMR and market rent, combined with the tight rental market, makes it challenging to achieve positive cash flow while accepting Section 8 vouchers. Investors looking to enter this market should consider alternative strategies or focus on other ZIP codes where the FMR is closer to the market rent. --- This analysis provides a detailed look into the dynamics of the rental market in El Monte, focusing specifically on the challenges faced by Section 8 voucher holders and investors. The data clearly shows that the ZIP code is not favorable for those seeking to invest in properties that strictly adhere to FMR guidelines.

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.