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 | $2,520 |
| 1 Bedroom | $2,810 |
| 2 Bedrooms | $3,470 |
| 3 Bedrooms | $4,400 |
| 4 Bedrooms | $4,930 |
| 5 Bedrooms | $5,719 |
| 6 Bedrooms | $6,405 |
| 7 Bedrooms | $6,917 |
| 8 Bedrooms | $7,263 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,470 | $705,570 | 0.49% | F |
| 3BR | $4,400 | $937,704 | 0.47% | F |
| 4BR | $4,930 | $1,165,803 | 0.42% | F |
| 5BR | $5,719 | $1,626,644 | 0.35% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 91741, which covers Glendora, CA, in Los Angeles County, can be dissected into several key components to understand how it impacts landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $3000. This figure represents the maximum amount that the government will reimburse landlords for renting out a unit under the Section 8 program.
However, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), is higher at $3,320. This means that landlords might face a discrepancy between the market value and the government reimbursement rates when considering participation in the Section 8 program.
To walk through the specifics, let's break down the reimbursement process. A landlord receives a fixed payment from the government based on the SAFMR, but the total rent collected also includes the tenant's portion. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 for a tenant in this area, their contribution would be $450 per month.
In addition to the tenant's portion, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in this area, the utility allowance might range from $150 to $200 per month. Therefore, the total monthly rent collected by the landlord could be calculated as follows:
$3000 (government reimbursement) + $450 (tenant contribution) + $175 (utility allowance) = $3625.
This calculation shows that the landlord could potentially collect a total of $3625 per month from a Section 8 tenant. However, the actual rent charged cannot exceed the ZORI of $3,320. Thus, the reimbursement gap or surplus must be understood in this context. Since the SAFMR is lower than the ZORI, landlords might find themselves collecting less than the market rent. In this case, the reimbursement gap would be $320 per month ($3,320 - $3000).
To summarize, landlords in ZIP code 91741 who participate in the Section 8 program for a two-bedroom apartment will receive a maximum reimbursement of $3000 from the government. They will also collect a tenant contribution of approximately $450 and a utility allowance of around $175, totaling $3625. But since the maximum allowable rent is $3,320, landlords will have a reimbursement gap of $320 per month. This gap represents the difference between the local market rent and the government reimbursement rate, indicating a potential financial loss for landlords compared to renting without a voucher.
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.