Section 8 Fair Market Rent (FMR) for ZIP 93292 - 2027

Investment Score for ZIP 93292

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	$1,290
1 Bedroom	$1,300
2 Bedrooms	$1,700
3 Bedrooms	$2,340
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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	$1,700	$273,563	0.62%	D
3BR	$2,340	$384,838	0.61%	D
4BR	$2,740	$453,242	0.6%	D
5BR	$3,178	$535,799	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93292 (Visalia, CA) #### Section 8 Voucher Dynamics In Visalia, CA (ZIP 93292), the Fair Market Rent (FMR) for a two-bedroom unit is set at $1770 per month for 2026. This figure represents 25.6% of the median household income of $82,872. However, the actual rent prices can be significantly higher, with the Zillow median price for a two-bedroom property being $270,246. This translates to a price-to-FMR ratio of 12.7x, indicating that the actual rental costs are far above the FMR. For Section 8 voucher holders, this means that finding suitable housing within their budget constraints is challenging. The voucher amount of $1770 might only cover a small fraction of the actual rental costs, making it difficult for tenants to find properties that accept their vouchers without requiring additional out-of-pocket expenses. #### Affordability & Renter Profile The population of Visalia is 45,780, with 38.0% of residents being renters. Given the occupancy rate of 95.1%, it suggests that the rental market is relatively tight, with most available units being occupied. The median household income of $82,872 indicates a middle-class area where affordability is a significant concern, especially for those relying on Section 8 vouchers. With the high price-to-FMR ratio, it is clear that the market is not particularly affordable for low-income renters. The high demand and limited supply create a competitive environment for both tenants and landlords, potentially leading to higher rents and fewer options for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 93292 offers mixed opportunities. While the rental market is tight, the actual rental prices are much higher than the FMR. An investor looking to maximize cash flow would need to consider whether the FMR aligns with the local rental market dynamics. Given that the FMR for a two-bedroom unit is $1770, but the actual median rent is likely much higher, the cash flow potential for properties accepting Section 8 vouchers is limited. To determine the investment grade, we must consider the balance between rental income and mortgage payments. If an investor purchases a two-bedroom property at the median price of $270,246, they would need to ensure that the rental income covers the mortgage and other expenses. Assuming a typical mortgage rate of 4.5% and a down payment of 20%, the monthly mortgage payment would be approximately $1100. Adding typical property management and maintenance costs, the total monthly expenses could easily exceed the FMR of $1770. Therefore, the investment grade for this ZIP code is moderate to low for Section 8-focused investors due to the mismatch between FMR and actual rental prices. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1350, which is still below the median rental prices but closer to what is realistically achievable in terms of cash flow. This strategy allows investors to target areas where the gap between FMR and actual rents is less pronounced. 2. **Consider Outlying Areas**: Investors might want to look into outlying areas of Visalia where rental prices are lower. While the core of Visalia has a price-to-FMR ratio of 12.7x, there could be neighborhoods or adjacent ZIP codes where the ratio is more favorable, providing better cash flow opportunities. 3. **Improve Property Value**: To attract tenants willing to pay closer to the actual market rates, investors should consider improving the value of their properties through renovations or upgrades. This could include modernizing kitchens and bathrooms, adding energy-efficient appliances, or enhancing the overall living space to justify higher rents. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 93292 is to **skip** this market. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow while adhering to the FMR guidelines. Instead, investors should explore other areas within Visalia or neighboring regions where the gap between FMR and actual rents is narrower, offering better financial returns and a more stable tenant base.

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.