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 | $2,470 |
| 1 Bedroom | $2,760 |
| 2 Bedrooms | $3,410 |
| 3 Bedrooms | $4,330 |
| 4 Bedrooms | $4,840 |
| 5 Bedrooms | $5,614 |
| 6 Bedrooms | $6,288 |
| 7 Bedrooms | $6,791 |
| 8 Bedrooms | $7,131 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,410 | $523,416 | 0.65% | D |
| 3BR | $4,330 | $774,893 | 0.56% | F |
| 4BR | $4,840 | $869,864 | 0.56% | F |
| 5BR | $5,614 | $983,433 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 91792, located in West Covina, CA, within Los Angeles County, offers a detailed snapshot of rental economics for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $2,940 for FY 2024, which is notably higher than the actual market rent of $2,417, as indicated by ZORI (Zillow Observed Rental Index).
This disparity means that voucher tenants can provide positive cash flow for landlords. At the FMR rate, landlords receive approximately $523 more per month than the average market rent, indicating a strong cash flow potential. This positive difference suggests that landlords can comfortably cover their mortgage payments, maintenance costs, and other expenses while still generating profit.
To further analyze the investment opportunity, consider the median home value in the area, which stands at $818,994. The rent-to-price ratio can be calculated as follows: $2,417 monthly rent translates to an annual rent of $29,004, resulting in a rent-to-price ratio of roughly 3.5%. This ratio is relatively low, suggesting that rental income alone may not fully justify the purchase price of a property. However, the higher FMR rate can make up for this discrepancy, especially when considering the long-term stability and guaranteed income stream that comes with voucher tenants.
The dynamics between renting and buying in this market do not significantly impact investment decisions due to the N/A-day median days on market (DOM) and 0.1% price-cut share, indicating that properties are typically sold quickly without substantial price reductions. This stability supports the attractiveness of the rental market for investors.
The strongest angle for Section 8 investors in ZIP 91792 is cash flow. With voucher tenants paying above the market rate, landlords can expect consistent and profitable returns on their investments.
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.