Location: Hanford-Corcoran, CA | Metro: Hanford-Corcoran, 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 | $1,380 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $280,618 | 0.63% | D |
| 3BR | $2,450 | $369,721 | 0.66% | D |
| 4BR | $2,890 | $420,435 | 0.69% | D |
| 5BR | $3,352 | $492,473 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 93245, located in Lemoore, CA, within the Hanford-Corcoran, CA MSA metro area, reveals key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) as determined by the U.S. Department of Housing and Urban Development (HUD) for this ZIP code is set at $1,590 for the fiscal year 2024. In contrast, the market rent, measured by the Zillow Observed Rental Index (ZORI), stands at $1,843. This indicates that landlords accepting Section 8 vouchers will experience marginal cash flow on average units, as the voucher amount is lower than the market rate.
To further analyze the investment potential, consider the median home value in the area, which is $384,331. By dividing the market rent ($1,843) by the median home value ($384,331), we can derive a rent-to-price ratio of approximately 0.48%. This ratio suggests that rental properties in the area offer a reasonable return relative to the purchase price of homes, making them an attractive option for investors looking to balance between rental income and property value.
The rental market in ZIP 93245 also shows strong demand, evidenced by a median Days on Market (DOM) of just 25 days for rental listings. Additionally, the low price-cut share of 0.2% indicates that landlords do not frequently need to reduce rents to attract tenants, implying a stable rental market. These factors suggest that while voucher tenants may only marginally contribute to positive cash flow on standard units, they can still provide steady income without the risk of frequent vacancy periods or significant rent reductions.
In conclusion, the strongest investor angle in ZIP 93245 is stability. Despite the marginal cash flow from Section 8 tenants, the robust demand and minimal need for rent adjustments create a reliable and predictable investment environment.
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.