Section 8 Fair Market Rent (FMR) for ZIP 93277 - 2027

Investment Score for ZIP 93277

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,230
1 Bedroom	$1,240
2 Bedrooms	$1,620
3 Bedrooms	$2,230
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,620	$282,436	0.57%	F
3BR	$2,230	$370,681	0.6%	D
4BR	$2,610	$463,259	0.56%	F
5BR	$3,028	$564,520	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93277 (Visalia, CA) #### Section 8 Voucher Dynamics In Visalia, CA (ZIP code 93277), the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1640 per month. This figure represents 24.4% of the median household income of $80,548, indicating that it is a relatively affordable rent for the average resident. However, the actual rental market prices are significantly higher. According to Zillow, the median price for a two-bedroom home is $276,274, which translates to a monthly mortgage payment of approximately $1,400 based on a 4.5% interest rate and a 30-year term. When considering property taxes, insurance, and maintenance costs, the total monthly cost can easily exceed the FMR. For instance, if we assume an additional $200 for property taxes, insurance, and maintenance, the total monthly cost would be around $1,600, which is just above the FMR but still leaves little room for profit margins. The constraints for voucher holders in this area are evident. The FMR is designed to cover the majority of housing costs in the area, but the actual rental prices often exceed this amount. This means that tenants with Section 8 vouchers might struggle to find landlords willing to accept the voucher due to the limited financial benefit they offer compared to market rates. Additionally, the occupancy rate of 95.0% suggests that there is little vacancy for these tenants to move into, further complicating their search for affordable housing. #### Affordability & Renter Profile The population of Visalia is 53,985, with 40.3% of residents being renters. This indicates a significant demand for rental properties, particularly among those who might rely on Section 8 vouchers. Given the median household income of $80,548, the affordability of housing is a critical issue. The high price-to-FMR ratio of 14.0x for a two-bedroom home suggests that the market is quite tight, with prices far exceeding what the FMR would suggest as reasonable. This makes it challenging for low-income households to find affordable housing options without assistance. The high occupancy rate of 95.0% also points to a robust rental market where supply is likely constrained. With such a high percentage of homes occupied, any increase in demand could lead to even higher rental prices, exacerbating the affordability problem. This tight market condition is particularly challenging for Section 8 voucher holders, who may find it difficult to secure housing within the limits of their vouchers. #### Investor Angle From an investor perspective, the ZIP code 93277 presents a mixed picture. While the rental market is strong, with a high occupancy rate and significant demand, the actual rental prices are much higher than the FMR. An investor looking to focus on Section 8 vouchers would need to consider whether the FMR is sufficient to cover operating costs and generate a profit. Given the FMR for a two-bedroom unit at $1640 and the median home price of $276,274, the price-to-FMR ratio of 14.0x suggests that the market is highly inflated relative to the FMR. If an investor were to purchase a two-bedroom home for $276,274 and aim to rent it out at the FMR, they would face significant challenges in covering the mortgage, taxes, insurance, and maintenance costs. The total monthly expenses would likely exceed the FMR, making it difficult to achieve positive cash flow. Moreover, the investment grade in this area would be considered low due to the mismatch between the FMR and actual market prices. Investors might find it more profitable to seek opportunities in areas where the FMR is closer to the actual rental prices, allowing for better cash flow and a higher likelihood of attracting tenants with Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1250, which is lower than the FMR for a two-bedroom unit. This could provide a better opportunity to achieve positive cash flow while still being attractive to Section 8 voucher holders. 2. **Target Lower-Income Neighborhoods**: Within Visalia, there might be pockets of the city where rental prices are closer to the FMR. Investors should conduct a more granular analysis of different neighborhoods within the ZIP code to identify areas where the gap between actual rents and FMR is narrower. This could involve examining census tracts or specific streets within the ZIP code to pinpoint more affordable rental markets. 3. **Consider Multi-Family Properties**: Multi-family properties might offer a better investment opportunity due to economies of scale. By purchasing a multi-unit building, investors can spread the fixed costs (such as property taxes and insurance) across multiple units, potentially achieving positive cash flow even if individual units are rented at the FMR. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 93277 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow while still being attractive to voucher holders. Investors might want to look for opportunities in areas with a lower price-to-FMR ratio or where the rental market is less inflated relative to the FMR. Alternatively, they could consider investing in smaller units or multi-family properties to optimize their returns.

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.