Section 8 Fair Market Rent (FMR) for ZIP 91790 - 2027

Investment Score for ZIP 91790

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	$2,580
1 Bedroom	$2,880
2 Bedrooms	$3,550
3 Bedrooms	$4,500
4 Bedrooms	$5,040
5 Bedrooms	$5,846
6 Bedrooms	$6,548
7 Bedrooms	$7,072
8 Bedrooms	$7,426

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
2BR	$3,550	$731,641	0.49%	F
3BR	$4,500	$812,366	0.55%	F
4BR	$5,040	$878,706	0.57%	F
5BR	$5,846	$964,495	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91790 (West Covina, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91790 in West Covina, California, for 2026 is set at $2920 for a two-bedroom unit. However, the actual rental market price for a two-bedroom unit is significantly higher, with the Zillow median price being $741,904. This translates to a price-to-FMR ratio of 21.2x, indicating that the actual market rent is far above the FMR. For a voucher holder, this means that they would only be able to afford a two-bedroom unit if it were priced at $2920 per month, which is substantially lower than the typical market rate. Therefore, voucher holders face significant constraints in finding suitable housing units within their budget. #### Affordability & Renter Profile ZIP code 91790 has a population of 44,710, with 38.6% of residents being renters. The median household income in the area is $102,927, and the FMR for a two-bedroom unit represents 34.0% of this median income. Given the high price-to-FMR ratio, it suggests that the rental market is quite tight and likely favors landlords over tenants. With a high occupancy rate of 95.4%, there is little vacancy, indicating a robust demand for rental properties. The renter profile in this area is diverse, but the majority of renters would need to spend a considerable portion of their income on housing, making it challenging for those with lower incomes to find affordable options. #### Investor Angle From an investor perspective, the ZIP code 91790 offers mixed opportunities. While the actual market rents are much higher than the FMR, the cash flow potential for properties rented under the Section 8 program is limited by the FMR caps. A two-bedroom unit priced at $2920 per month would generate significantly less revenue compared to the market rate of $741,904. This makes it less attractive for investors looking to maximize returns through market-rate rentals. However, the high occupancy rate and strong demand suggest that rental properties can still be profitable, albeit at a lower margin when considering Section 8 vouchers. The investment grade for this ZIP code is moderate. Although the rental market is robust, the high price-to-FMR ratio indicates that properties rented under Section 8 may struggle to compete with market-rate rentals. Investors should carefully consider the balance between potential rental income and the availability of Section 8 vouchers in the area. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $2340, which is still well below the market rate. These units may be more accessible to voucher holders and could provide a steady stream of rental income without the risk of long vacancies. 2. **Consider Location-Specific Pricing**: The median household income in West Covina is relatively high at $102,927. This suggests that some residents may be willing to pay more than the FMR for better quality or more desirable locations. Investors could explore opportunities to offer slightly higher-end properties that cater to this demographic, potentially commanding higher rents while still remaining competitive. #### Bottom Line For Section 8-focused investors, the ZIP code 91790 presents a challenging environment due to the high price-to-FMR ratio. The recommendation is to **Skip** this ZIP code for now unless you can secure properties at or near the FMR levels. If you are looking to diversify your portfolio with a mix of market-rate and Section 8 rentals, consider focusing on smaller units or properties in less desirable areas where the price-to-FMR ratio is lower. However, given the tight market and high occupancy rates, it may be difficult to find properties that meet these criteria.

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.