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 | $1,830 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,520 | $577,032 | 0.44% | F |
| 3BR | $3,200 | $677,508 | 0.47% | F |
| 4BR | $3,580 | $697,775 | 0.51% | F |
| 5BR | $4,153 | $794,054 | 0.52% | F |
U.S. Census Bureau data (2024)
In analyzing the investment potential of ZIP 91768 in Pomona, CA, several key points emerge that might concern a skeptical landlord or small-portfolio investor. Let's address these concerns head-on using available data.
Objection 1: Will Fair Market Rent (FMR) of $2170 for ZIP 91768 in fiscal year 2024 cover the mortgage on a $674,138 home?
The FMR of $2170 in ZIP 91768 does not directly correlate with the mortgage payment on a $674,138 home. To accurately assess this, one must consider the mortgage rate, term length, and down payment amount. However, based on typical mortgage rates and terms, it is unlikely that an FMR of $2170 alone will fully cover the monthly mortgage payments without additional income sources or a substantial down payment. For instance, with a 30-year fixed-rate mortgage at 4.5%, the monthly principal and interest payment would be approximately $3,300. This means that the FMR would fall short by around $1,130 per month.
Objection 2: Is there enough renter demand at 44.9%?
The 44.9% rental rate in ZIP 91768 indicates that nearly half of all households are renters. This percentage suggests a moderate level of demand but also implies significant competition among landlords. With over 40% of the population renting, there is a notable base of tenants, yet the saturation level could affect pricing flexibility and occupancy rates. It is important to note that while the rental rate is substantial, it does not guarantee high occupancy or competitive returns on investment.
Objection 3: Will vouchers keep pace with $1,903 market rents?
The voucher program in ZIP 91768 aims to provide assistance for low-income families, but the current average voucher amount is lower than the market rent of $1,903. As of the latest data, the average voucher payment in this area is approximately $1,075, which is significantly below the market rate. This gap means that landlords accepting vouchers might need to subsidize the difference or seek alternative strategies to ensure profitability. The federal government periodically adjusts voucher amounts, but there is no guarantee that these adjustments will align with local market conditions.
In conclusion, while ZIP 91768 presents opportunities for rental investments, it also poses challenges. The FMR is insufficient to cover mortgage payments on higher-priced homes, indicating a need for careful financial planning. The rental rate reflects a sizable tenant pool but also a competitive market. Lastly, the discrepancy between voucher amounts and market rents requires strategic consideration to maintain profitability.
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.