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 | $248,765 | 0.53% | F |
| 3BR | $1,830 | $392,751 | 0.47% | F |
| 4BR | $2,160 | $461,889 | 0.47% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 93270, Terra Bella, CA, within the Visalia, CA MSA metro, does not align perfectly. The Fair Market Rent (FMR) set at $1,110 for fiscal year 2024 is slightly above the market rent reported by the Census ACS at $1,059. This suggests that while landlords can aim for the higher FMR, they might face some resistance from tenants accustomed to the lower market rates.
Acquisition in this area is moderately affordable. With a median home value of $390,927, potential investors have a clear benchmark for property costs. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that the local real estate market's dynamics are unclear. Investors should conduct further research into the local housing market to understand the risks associated with these unknowns.
Tenant demand is present but limited by the population size. ZIP 93270 has a total population of 5,482, with 32.2% being renters. This translates to approximately 1,764 rental units needed, which could support a modest number of rental properties. Given the small population base, landlords must ensure their properties are well-positioned to attract and retain tenants.
Verdict: While the rent math leans towards favoring landlords with the higher FMR target, the narrow margin between FMR and market rent requires careful pricing strategies. Acquisition is affordable, but the opaque market conditions necessitate thorough due diligence. Tenant demand exists, but it is limited by the small population. For landlords and small-portfolio investors, ZIP 93270 presents an opportunity with manageable risk, provided they focus on quality properties and competitive pricing.
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.