Location: Visalia, CA | Metro: Visalia, 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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $223,782 | 0.59% | F |
| 3BR | $1,830 | $340,181 | 0.54% | F |
| 4BR | $2,160 | $406,717 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into the real estate market in ZIP 93267, Strathmore, CA, might raise several concerns regarding the feasibility of investing in this area. Let's address these objections directly with the available data.
Will FMR $1060 (zip FY 2024) cover the mortgage on a $318,860 home?
The Fair Market Rent (FMR) for ZIP 93267 is set at $1060 per month for FY 2024. To determine if this will cover the mortgage on a home priced at $318,860, we need to consider typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on such a loan would be approximately $1680. This means that the FMR of $1060 is insufficient to cover the mortgage payment alone, let alone other costs like property taxes, insurance, and maintenance. However, it's important to note that property values can vary widely within a zip code, and homes may be available at lower price points, which could reduce the necessary rental income.
Is there enough renter demand at 32.9%?
The percentage of renter-occupied units in ZIP 93267 is 32.9%. This figure suggests that there is a moderate level of demand for rental properties. While it may not be as high as in densely populated urban areas, it does indicate a viable market for rentals. It's also worth considering that the total number of households in the area and the local economic conditions play a crucial role in sustaining renter demand. The data provided does not specify the total number of households, so a deeper analysis of the local housing market would be necessary to fully assess the potential demand.
Will vouchers keep pace with $986 market rents?
The average market rent in ZIP 93267 is $986. Given that the FMR is slightly higher at $1060, landlords who participate in voucher programs should find that the subsidy covers the majority of the rent. However, the success of voucher programs depends on factors such as the availability of funds, the administrative efficiency of the program, and the willingness of tenants to apply for and manage vouchers. The data does not provide specific information on the growth rate of voucher allocations or the efficiency of the local housing authority in managing these programs, so while the current FMR is favorable, future adjustments to voucher amounts must be monitored closely to ensure they remain competitive with market rents.
In conclusion, while the data shows that the FMR in ZIP 93267 may not fully cover the mortgage on a $318,860 home, there is a reasonable demand for rentals and the current FMR supports participation in voucher programs. A prudent investor should consider these factors alongside broader market trends and local economic conditions before making an investment decision.
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.