Location: Visalia, 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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $248,799 | 0.63% | D |
| 3BR | $2,150 | $346,539 | 0.62% | D |
| 4BR | $2,520 | $429,617 | 0.59% | F |
| 5BR | $2,923 | $498,170 | 0.59% | F |
U.S. Census Bureau data (2024)
Located in the heart of the San Joaquin Valley, ZIP code 93274 covers the city of Tulare, a community with a strong agricultural heritage and a growing logistics footprint. The area is defined by its family-friendly neighborhoods and proximity to major highways, making it a practical hub for commuters working in the broader Visalia-Porterville metro. A significant driver of the local economy is the Tulare International Agri-Center, which hosts the World Ag Expo and contributes substantially to regional employment and visitor traffic, underscoring the area’s deep roots in the farming industry.
From a purely numerical standpoint, Tulare presents a challenging gap between market rates and HUD subsidies. The FY2026 Full FMR for a 2-bedroom unit is set at $1,590, yet current Zillow market data (ZORI) shows rents reaching $1,793, leaving a deficit of $203 per month if you cap at the Fair Market Rent. The HUD SAFMR for this ZIP is even lower at $1,340. Entry-level investments are accessible, with a median 2BR sale price of $244,228 and an overall median home value of $355,538. However, with a median days on market of 45 days, inventory moves moderately, suggesting investors must be patient to find deals that pencil out.
The tenant pool is robust, supported by a 42.9% renter share and a median household income of $72,650. While the income is healthy relative to many inland California markets, it implies that a significant portion of the population may still require rental assistance. Local amenities, such as the highly rated Tulare Union High School District and proximity to the Visalia Mall area, enhance the neighborhood's appeal for long-term renters. However, investors should verify local landlord regulations, as California’s statewide tenant protections apply strictly here, affecting eviction timelines and rent control on specific properties.
The verdict for Section 8 investors in 93274 leans toward stability rather than immediate high-yield cash flow. The negative spread between the $1,590 FMR and the $1,793 market rent means you must acquire assets below the median price of $244,228 to achieve positive leverage. This market is best suited for investors seeking steady, government-backed occupancy in an affordable market with decent demographic fundamentals, rather than those chasing aggressive appreciation or premium market rents.
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.