Section 8 Fair Market Rent (FMR) for ZIP 91748 - 2027

Investment Score for ZIP 91748

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	$2,140
1 Bedroom	$2,390
2 Bedrooms	$2,950
3 Bedrooms	$3,740
4 Bedrooms	$4,190
5 Bedrooms	$4,860
6 Bedrooms	$5,443
7 Bedrooms	$5,878
8 Bedrooms	$6,172

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,950	$426,547	0.69%	D
3BR	$3,740	$833,028	0.45%	F
4BR	$4,190	$1,062,969	0.39%	F
5BR	$4,860	$1,388,666	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91748 (Rowland Heights, CA) #### Introduction ZIP code 91748, located in Rowland Heights, California, is situated within Los Angeles County. The area has a population of 42,463 residents, with a median household income of $83,428. Approximately 33.4% of the population are renters, indicating a significant demand for rental properties. The occupancy rate stands at 96.3%, suggesting that the rental market is quite robust and nearly fully utilized. This analysis will focus on the dynamics of Section 8 vouchers, affordability, renter profile, investor angle, and actionable insights for those interested in investing in this ZIP code. #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP code 91748 is as follows: - 0BR: $1870 - 1BR: $2090 - 2BR: $2610 (which represents 37.5% of the median income) - 3BR: $3310 - 4BR: $3680 These FMRs are set by HUD and represent the maximum amount that a Section 8 voucher holder can pay for rent. For instance, a voucher holder can afford a 2BR unit at $2610 per month, which is 37.5% of the median income in the area. However, it is crucial to understand how these FMRs compare to actual rents in the market. #### Affordability & Renter Profile The Zillow median price for a 2BR property in ZIP code 91748 is $427,583. Given the FMR for a 2BR unit is $2610, the price-to-FMR ratio is approximately 13.7x. This high ratio indicates that the rental market is significantly more expensive compared to the FMRs established by HUD. Considering the median household income of $83,428, the affordability of housing becomes a critical issue. The FMR for a 2BR unit is only 37.5% of the median income, which means that even if a household qualifies for a Section 8 voucher, they would still need to contribute a substantial portion of their income towards rent. This suggests that the market is relatively tight, with limited affordable options for low-income renters. Given the 33.4% renter population and a high occupancy rate of 96.3%, it is clear that there is strong demand for rental properties. However, the high price-to-FMR ratio implies that many renters may struggle to find units within their budget, especially those relying on Section 8 vouchers. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code is cash-flow positive at the FMR rates. To determine this, we must consider the typical rental prices and compare them to the FMRs. For a 2BR unit, the Zillow median price suggests a rental value far above the FMR. If we assume a conservative estimate of rental prices based on the median home value, a 2BR unit might command a rental price around $2,000-$2,500 per month. However, the FMR for a 2BR unit is $2610, which is slightly higher than the estimated rental range. This means that landlords who accept Section 8 vouchers could potentially see positive cash flow, assuming they can secure tenants willing to pay the FMR. The investment grade for this ZIP code would be moderate to high, given the strong demand for rental properties and the relatively high occupancy rate. However, the challenge lies in finding units that are both affordable and attractive to voucher holders, considering the high price-to-FMR ratio. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR and 1BR apartments may offer better opportunities for positive cash flow. These units have FMRs of $1870 and $2090 respectively, which are lower than the estimated rental prices for similar-sized units in the area. Landlords should consider converting larger units into smaller ones to cater to the needs of voucher holders. 2. **Target Affordable Housing Projects**: Investors looking to capitalize on the strong rental market should consider developing or purchasing properties specifically designed for affordable housing. This includes units that are priced closer to the FMRs, particularly for 2BR and 3BR units. By targeting these projects, investors can ensure they remain competitive in the rental market while also providing much-needed affordable housing options. 3. **Engage with Local Programs**: Rowland Heights has a significant number of renters, and engaging with local programs that support affordable housing can be beneficial. This might include partnerships with local non-profits, government incentives, or subsidies that can help reduce the cost of maintaining rental properties. Such collaborations can enhance the feasibility of accepting Section 8 vouchers. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 91748 is to **Buy** properties that are aligned with the FMRs, particularly smaller units like 0BR and 1BR apartments. The strong demand for rental properties and the high occupancy rate make this ZIP code a viable investment opportunity. However, investors should be cautious about the high price-to-FMR ratio and focus on units that are priced close to the FMRs to ensure positive cash flow. In summary, the market in Rowland Heights is tight but offers potential for investors who can navigate the challenges of the high price-to-FMR ratio. By focusing on smaller units and engaging with local affordable housing initiatives, investors can maximize their returns while supporting the community's need for affordable housing.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.