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 | $1,670 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $260,856 | 0.71% | D |
| 2BR | $2,300 | $364,113 | 0.63% | D |
| 3BR | $2,920 | $440,271 | 0.66% | D |
| 4BR | $3,270 | $495,351 | 0.66% | D |
| 5BR | $3,793 | $570,644 | 0.66% | D |
U.S. Census Bureau data (2024)
Palmdale is a suburban city in northern Los Angeles County, situated within the Antelope Valley and separated from the Los Angeles basin by the San Gabriel Mountains. It has historically ranked as one of the top 25 fastest-growing cities in the nation, driven by an influx of residents and companies seeking more space. A major employer driving the local economy is Palmdale Regional Airport, adjacent to Air Force Plant 42, a significant aerospace industrial hub that supports major manufacturing tenants. This technical and industrial base provides a distinct employment anchor for the rental market.
From a financial perspective, Palmdale ZIP 93550 presents a measurable opportunity. The FY2026 Fair Market Rent for a 2-bedroom unit is $2,070, while the current Zillow market rent is $2,414, resulting in a positive gap of $344. Investors can acquire assets at a median price point of $449,598, with 2-bedroom properties specifically trading around $363,771. Inventory moves at a moderate pace, with a median of 49 days on market. Voucher tenants cash-flow effectively here because the payment standard sits well below market rates, allowing landlords to collect the full HUD amount without needing a rent exception.
The tenant pool is robust, characterized by a high 48.8% renter share and a median household income of $62,078. This income level suggests a population that values affordability but may require rental assistance to bridge the gap to market prices. The area continues to attract families, with the City noting it is only 25% built out, offering significant long-term potential. Access to major employers like Plant 42 ensures a steady demand for housing from the local workforce.
The Section 8 verdict for Palmdale 93550 leans toward cashflow and stability. The specific $344 spread between the 2BR market rent and the FMR provides a cushion for investors. With a median 2BR sales price of $363,771 against a guaranteed annualized rent of roughly $24,840, the area offers a solid entry point for small portfolios seeking reliable government-backed income in a growing suburban enclave.
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.