Location: Visalia, CA | Metro: Bakersfield-Delano, CA MSA
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 | $1,020 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $210,837 | 0.64% | D |
| 3BR | $1,860 | $269,810 | 0.69% | D |
| 4BR | $2,240 | $303,597 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 program's impact on real estate investment in ZIP code 93219, located in Tulare, CA, is significant due to the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 93219 is set at $1050, while the Census ACS reports the average market rent at $955. This creates a gap of $95 in favor of the FMR, which translates to approximately a 10% premium over the open-market rate.
This gap makes properties in ZIP 93219 attractive for landlords and small-portfolio investors looking to maximize their yields. Voucher tenants provide a guaranteed income stream that is higher than what could be obtained from market-rate tenants. In a region where 46.6% of residents are renters, and the median income stands at $52,273, the Section 8 program ensures a steady flow of tenants who can afford the rent through government assistance.
The median home value in Tulare, CA, is $265,610, indicating that homeownership is relatively affordable compared to other areas. However, for those who must rent, the availability of Section 8 vouchers helps alleviate the financial burden of housing costs. By accepting voucher tenants, landlords can benefit from the higher rental rates set by the FMR, which compensates for any potential administrative overhead associated with the program.
In summary, the $95 premium, or 10% above the market rate, offered by the Section 8 program in ZIP 93219 presents an opportunity for landlords to achieve better yields. The high percentage of renters and the median income level support the viability of this strategy, making it a favorable choice for property owners in this area.
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.