Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,150 |
| 1 Bedroom | $2,400 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,200 |
| 5 Bedrooms | $4,872 |
| 6 Bedrooms | $5,457 |
| 7 Bedrooms | $5,894 |
| 8 Bedrooms | $6,189 |
ZIP 93590, located in Palmdale, CA, is well-suited as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $2,540, which is notably lower than the median rent in the area at $1,071. This spread indicates that properties in ZIP 93590 can be leased at rates that are attractive to both tenants and landlords participating in the Section 8 program.
The median household income in ZIP 93590 is $38,590, reflecting a working-class community. Despite this, the area benefits from a below-average cost of living index of 59, compared to the national average of 100. This means that residents have more disposable income, which can support stable rental payments and reduce the risk of default.
The median home value in ZIP 93590 is $180,601, making it an affordable market for potential investments. However, given the specific nature of Section 8 properties, the focus should be on rental properties rather than homeownership. The low median rent relative to the FMR suggests that landlords can maintain positive cash flow while adhering to Section 8 guidelines.
ZIP 93590 is not an ideal appreciation play due to the lack of significant price-cut share and days on market (DOM) data. Instead, it serves as a reliable cash-flow anchor, ensuring steady returns and financial stability within a diversified Section 8 portfolio.
Data Sources: FMR data from HUD (2027).
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.