Section 8 Fair Market Rent (FMR) for ZIP 91770 - 2027

Investment Score for ZIP 91770

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	$1,890
1 Bedroom	$2,120
2 Bedrooms	$2,610
3 Bedrooms	$3,310
4 Bedrooms	$3,710
5 Bedrooms	$4,304
6 Bedrooms	$4,820
7 Bedrooms	$5,206
8 Bedrooms	$5,466

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	$2,120	$677,565	0.31%	F
2BR	$2,610	$787,168	0.33%	F
3BR	$3,310	$884,323	0.37%	F
4BR	$3,710	$1,051,223	0.35%	F
5BR	$4,304	$1,207,457	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91770 (Rosemead, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Rosemead, CA (ZIP 91770), as of 2026, is set at $2270 for a two-bedroom unit. However, the Zillow median price for a two-bedroom home in this area is significantly higher at $795,138. This results in a price-to-FMR ratio of 29.2x, indicating that the actual rental prices in the market far exceed the FMR. For instance, if a landlord charges the Zillow median rent of approximately $3313 per month (based on a typical mortgage payment of around 0.5% of the property value), a voucher holder would only be able to cover $2270 of that amount. Consequently, voucher holders face significant constraints, as they would need to find properties willing to accept the lower FMR or supplement their own funds to meet the higher market rents. #### Affordability & Renter Profile With a median household income of $75,000, the affordability of housing is a critical issue in Rosemead. The FMR for a three-bedroom unit is $2880, which represents 38.4% of the median income. Given that 51.0% of the population are renters and the occupancy rate is 94.2%, it is clear that the market is relatively tight. Many residents rely on rental housing, and the high proportion of renters suggests a strong demand for affordable units. However, the fact that the Zillow median price for a two-bedroom unit is so much higher than the FMR indicates that the market is not oversupplied; rather, it is highly competitive and expensive. #### Investor Angle From an investor perspective, the ZIP code 91770 presents a challenging scenario when considering cash flow at FMR levels. Given the high property values, landlords who purchase properties at the Zillow median price would likely struggle to achieve positive cash flow if they were to rent out their units at the FMR. For example, a mortgage payment on a $795,138 property would typically be around $3313 per month, which is already above the FMR for a two-bedroom unit. Therefore, relying solely on FMR would result in negative cash flow unless the landlord can secure additional subsidies or has other sources of income to offset the costs. In terms of investment grade, the high price-to-FMR ratio suggests that the area is not particularly attractive for Section 8-focused investors. The market is expensive, and the potential for positive cash flow is limited due to the disparity between FMR and actual market rents. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the Zillow median but still within the range of FMR. For instance, targeting a two-bedroom unit priced at around $600,000 could result in a monthly mortgage payment of about $2500, which is closer to the FMR of $2270. This would allow for a more manageable gap between the mortgage payment and the rental income, potentially leading to positive cash flow. 2. **Consider Multi-Family Units**: Given the high demand for rental housing and the tight market conditions, multi-family units might offer better opportunities. A four-bedroom unit with an FMR of $3200 could be more appealing to families and might have a higher likelihood of being rented out at or near the FMR. Additionally, multi-family units often benefit from economies of scale, reducing the overall cost per unit. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP 91770 is to **Skip** purchasing properties at the current market rates. The high price-to-FMR ratio makes it difficult to achieve positive cash flow, and the tight market conditions suggest that finding properties willing to accept FMR will be challenging. Instead, investors should consider areas with a more favorable price-to-FMR ratio or explore alternative investment strategies that do not rely solely on Section 8 vouchers.

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.