Section 8 Fair Market Rent (FMR) for ZIP 91801 - 2027

Investment Score for ZIP 91801

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	$2,180
1 Bedroom	$2,440
2 Bedrooms	$3,010
3 Bedrooms	$3,820
4 Bedrooms	$4,270
5 Bedrooms	$4,953
6 Bedrooms	$5,547
7 Bedrooms	$5,991
8 Bedrooms	$6,291

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	$2,440	$519,502	0.47%	F
2BR	$3,010	$740,136	0.41%	F
3BR	$3,820	$932,583	0.41%	F
4BR	$4,270	$1,163,921	0.37%	F
5BR	$4,953	$1,365,944	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91801 (Alhambra, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91801 in Alhambra, CA, as of 2026, is set at $2570 for a two-bedroom unit. This amount represents 34.6% of the median household income of $89,156, indicating that it is relatively affordable for families earning around the median income level. However, the actual rental market in Alhambra is significantly higher. The Zillow median price for a two-bedroom rental unit is $756,300, which translates to a monthly rent of approximately $6300 based on typical mortgage payments and property management costs. This means the actual rent is nearly 2.5 times higher than the FMR, creating a significant gap between what voucher holders can afford and the actual market rates. This disparity places substantial constraints on Section 8 voucher holders. They must find landlords willing to accept a rent that is substantially lower than the market rate. Given the high occupancy rate of 92.5%, there is limited availability of units, making it even more challenging for voucher holders to secure housing. #### Affordability & Renter Profile Alhambra has a population of 53,381, with 62.6% of residents being renters. This indicates a strong demand for rental properties in the area. The median household income is $89,156, which suggests that the majority of renters are middle-class individuals or families who may struggle to find affordable housing given the high market prices. The price-to-FMR ratio of 24.5x for a two-bedroom unit highlights the extreme unaffordability of the market for low-income renters. This tight market condition, combined with the high rent-to-income ratio, implies that there is a significant mismatch between the available housing stock and the affordability needs of the local population. As a result, many renters may be forced into substandard living conditions or may have to spend a disproportionately large share of their income on housing. #### Investor Angle From an investor perspective, the ZIP code 91801 offers mixed opportunities. While the Zillow median price for a two-bedroom unit is $756,300, the FMR of $2570 would not generate sufficient cash flow to cover the mortgage and other expenses associated with owning a property in this area. A typical mortgage payment for a property priced at $756,300 would be around $3750 per month, assuming a 30-year fixed-rate mortgage at 4.5%. This leaves a significant shortfall compared to the FMR. Given these factors, the investment grade for properties in this ZIP code, particularly those targeted towards Section 8 voucher holders, would be considered low. The high price-to-FMR ratio and the limited number of units that can be rented at FMR levels make it difficult for investors to achieve positive cash flow. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Investors should consider multi-family properties where they can spread the cost over multiple units. For example, a four-unit apartment building could potentially generate enough income from three units renting at market rates to offset the lower rent from one unit rented by a Section 8 voucher holder. This strategy could help mitigate the financial risk associated with accepting Section 8 vouchers. 2. **Target Lower-Rent Units**: Given the high price-to-FMR ratio, investors might want to target lower-rent units such as one-bedroom or studio apartments. These units typically have lower FMRs but also lower market rents, making them more feasible for positive cash flow. For instance, a one-bedroom unit with an FMR of $2060 might be rented at a slightly higher rate, say $2500, which could still provide a reasonable return on investment. 3. **Consider Renovation Projects**: Investors could look for older properties that need renovation. By investing in improvements, they might be able to command higher rents while still remaining within the FMR guidelines. This approach requires a detailed understanding of the renovation costs and potential increase in rental value. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 91801 presents a challenging environment due to the high price-to-FMR ratio and the limited number of units that can be rented at FMR levels. The recommendation for this ZIP code is to **skip** investing in single-family homes or properties where the primary source of income is expected to come from Section 8 vouchers. Instead, investors should focus on areas with a more favorable price-to-FMR ratio or consider alternative investment strategies such as multi-family properties or renovation projects to improve cash flow and returns. --- This analysis provides a clear picture of the rental market dynamics in ZIP code 91801, highlighting the challenges faced by both voucher holders and investors. The bottom line recommendation is grounded in the provided data, emphasizing the need for caution when considering investments in this area.

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.