Section 8 Fair Market Rent (FMR) for ZIP 93204 - 2027

Investment Score for ZIP 93204

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 93204 (Avenal, CA) for Section 8 purposes, follow these steps:

• Does FMR $1190 (zip FY 2024) clear debt service on a $257,349 property?
  • If yes: The Fair Market Rent (FMR) of $1190 is sufficient to cover the debt service on a property valued at $257,349. This means that the rental income generated from a Section 8 tenant would be adequate to meet mortgage obligations and other costs associated with owning the property.
  • If no: The FMR of $1190 does not clear the debt service on a $257,349 property. In this case, you would need to reconsider the purchase unless you can secure higher rents from non-Section 8 tenants or reduce your acquisition price.
• Is market rent $1,015 (Census ACS) above, at, or below FMR?
  • If above: The market rent of $1,015 exceeds the FMR of $1190. This indicates that there is potential to earn more than the Section 8 rate, which could be beneficial for covering additional expenses or generating profit.
  • If at: The market rent of $1,015 matches the FMR of $1190. This means that the rental rates for the area align with the Section 8 rates, making it a viable option for landlords who wish to participate in the program.
  • If below: The market rent of $1,015 is less than the FMR of $1190. While this might suggest that the area is undervalued, it also implies that non-Section 8 tenants might struggle to afford the higher rates set by the FMR, limiting your pool of potential tenants.
• Are 54.7% renters + N/A-day DOM enough demand?
  • If yes: With 54.7% of the population being renters, there is significant demand for rental properties. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties are rented out. Despite this, the high percentage of renters suggests a strong interest in housing, which is positive for investment.
  • If no: The 54.7% of renters may not be enough demand if other factors, such as economic conditions or competition, are unfavorable. The absence of DOM data complicates the analysis but does not necessarily negate the potential for investment.
  • If it depends: The decision hinges on the specifics of the local rental market and the availability of Section 8 vouchers. A high percentage of renters indicates demand, but without knowing the DOM, it's unclear how competitive the market is. You must also consider the supply of Section 8 vouchers in the area.

The final decision will depend on the answers to these questions and how they balance against each other. If the FMR covers debt service, market rents are favorable, and there is sufficient demand, then investing in Avenal, CA, for Section 8 purposes is advisable. Otherwise, it may not be the best choice for your portfolio.

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.