Section 8 Fair Market Rent (FMR) for ZIP 93218 - 2027

Location: Visalia, CA | Metro: Visalia, CA MSA

Investment Score for ZIP 93218

N/A

Monthly Rent (2BR)

$1,390

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$1,060
1 Bedroom	$1,060
2 Bedrooms	$1,390
3 Bedrooms	$1,910
4 Bedrooms	$2,240
5 Bedrooms	$2,598
6 Bedrooms	$2,910
7 Bedrooms	$3,143
8 Bedrooms	$3,300

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,910	$275,868	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

780

Median Household Income

$91,500

Housing Units

180

Renter Percentage

26.7%

Occupancy Rate

81.1%

Renter Occupied

The Section 8 cap rate analysis for ZIP code 93218 provides insight into potential investment opportunities for landlords and small-portfolio investors. To understand the gross yield, we must compare the Federal Market Rent (FMR) for a two-bedroom apartment, which is set at $1270 annually for FY 2024, with the market rent of $1,240 as reported by the Census ACS.

Given the median home value of $271,687 in ZIP 93218, let's calculate the implied gross yields for both scenarios:

Section 8 FMR Scenario: The annualized FMR of $1270 implies a gross yield of approximately 0.47%. This calculation is derived by dividing the annual rent ($1270) by the median home value ($271,687).
Market Rent Scenario: With the market rent at $1,240 per month, the annualized market rent is $14,880, leading to an implied gross yield of about 5.5%. This figure is calculated by taking the annual market rent ($14,880) and dividing it by the median home value ($271,687).

The stark difference between these two gross yields highlights the financial reality faced by investors interested in Section 8 properties versus those pursuing market-rate investments. The Section 8 FMR scenario offers a significantly lower gross yield compared to the market rent scenario.

Considering the renter density of 26.7% in ZIP 93218, it's evident that the market rent scenario is more realistic for most investors. However, the lack of Days on Market (DOM) data makes it challenging to assess how quickly Section 8 units might be leased relative to market-rate units. Despite this, the substantial disparity in gross yields suggests that while Section 8 properties offer stability, they come at a cost of reduced income generation capacity.

For landlords and small-portfolio investors, understanding these gross yields is crucial when deciding whether to participate in the Section 8 program or seek higher returns through market-rate rentals. The choice should be made based on individual investment goals and risk tolerance.

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.