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 | $254,993 | 0.52% | F |
| 3BR | $1,830 | $323,608 | 0.57% | F |
| 4BR | $2,160 | $373,263 | 0.58% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 93286 in Woodlake, CA, under the Section 8 program are significant. Tenant turnover is a major concern, with the market rent at $982 falling below the Fair Market Rent (FMR) of $1100 for fiscal year 2024. This discrepancy can lead to higher turnover rates as tenants seek more affordable housing options, creating instability for landlords. Vacancy exposure is another issue, as the Days on Market (DOM) data is unavailable, indicating that properties may remain vacant for extended periods, leading to lost rental income. Additionally, the typical home value in Woodlake stands at $331,569, while the median household income is only $47,574. This income-to-home-value ratio suggests that many residents may struggle to afford necessary maintenance, potentially increasing the burden on landlords to cover these costs.
Despite these challenges, the high renter share of 42.6% in ZIP 93286 presents a silver lining. A large proportion of renters typically correlates with a higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. The presence of Section 8 tenants can mitigate the risk of vacancy and ensure consistent rental income, even if it means accepting lower market rents. Moreover, the high concentration of renters can also indicate a strong local rental market, which may help to offset some of the financial pressures associated with deferred maintenance.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 93286 is moderate. While there are notable risks such as tenant turnover and deferred maintenance, the robust renter population provides a foundation for stable occupancy and demand for subsidized housing. Landlords should be prepared to manage these risks carefully but can expect a balanced opportunity in this area.
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.