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 | $2,250 |
| 1 Bedroom | $2,510 |
| 2 Bedrooms | $3,100 |
| 3 Bedrooms | $3,930 |
| 4 Bedrooms | $4,400 |
| 5 Bedrooms | $5,104 |
| 6 Bedrooms | $5,716 |
| 7 Bedrooms | $6,173 |
| 8 Bedrooms | $6,482 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,100 | $917,728 | 0.34% | F |
| 3BR | $3,930 | $1,059,316 | 0.37% | F |
| 4BR | $4,400 | $1,222,642 | 0.36% | F |
| 5BR | $5,104 | $1,815,054 | 0.28% | F |
U.S. Census Bureau data (2024)
In Temple City, CA (ZIP 91780), there are several potential pitfalls for first-time Section 8 landlords. Tenant turnover is a significant concern, with the market rent at $3,453 compared to the Federal Market Rent (FMR) of $2,600 for fiscal year 2024. This disparity indicates that tenants might find it difficult to cover the gap between the actual market rent and the FMR subsidy, leading to higher turnover rates.
Vacancy exposure is another critical issue. The Days on Market (DOM) figure is not available, which suggests that landlords may struggle to predict how long their properties will remain vacant before finding a tenant. This unpredictability can lead to financial strain, especially when combined with the need to maintain rental units to meet Section 8 standards.
Deferred maintenance poses a threat due to the typical home value of $1,105,310 and the median income of $103,659. While the home values are relatively high, the median income indicates that landlords may have to shoulder the costs of maintaining and upgrading properties to comply with Section 8 requirements, without the financial buffer that higher incomes might provide.
However, these risks must be weighed against the high renter share of 38.1%. A substantial portion of the population in Temple City relies on renting, which typically translates into a robust demand for housing vouchers. This high renter density can ensure a steady stream of Section 8 applicants, mitigating some of the financial uncertainties associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.