Location: Mariposa County, CA | Metro: Madera County, CA HUD Metro FMR Area
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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $364,194 | 0.45% | F |
| 3BR | $2,260 | $474,861 | 0.48% | F |
| 4BR | $2,580 | $589,148 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Ahwahnee, CA (ZIP 93601), might question whether the Fair Market Rent (FMR) of $1430 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $475,860. To put this into perspective, let's break it down. The median home value in Ahwahnee is around $475,860, and assuming a typical 20-year fixed-rate mortgage with an interest rate of approximately 4%, the monthly payment would be roughly $2,800. This means that the FMR of $1430 would not cover the mortgage alone, suggesting that relying solely on Section 8 tenants for rental income would be insufficient without additional financial support.
The second objection might revolve around the renter demand in Ahwahnee, which stands at 9.5% of the population. While this percentage indicates a modest level of renters, it does not necessarily reflect the number of potential Section 8 tenants. For a landlord, the critical factor is the proportion of those who qualify for and are seeking Section 8 housing. The data does not provide a breakdown of how many of these renters are part of the Section 8 program, leaving some uncertainty regarding the actual demand for subsidized housing in the area.
Lastly, an investor might be concerned about whether voucher payments will keep pace with the local market rents. Unfortunately, the data does not specify the current market rents in Ahwahnee, making it difficult to compare them directly with the FMR. However, historically, FMRs have been adjusted annually to reflect changes in housing costs. It is essential to monitor any updates to the FMR for ZIP 93601 and the broader county to ensure that voucher payments align with the increasing cost of living and housing expenses.
In conclusion, while Ahwahnee offers opportunities for landlords and small-portfolio investors through the Section 8 program, the FMR of $1430 will not cover the mortgage on a home priced at $475,860. Additionally, the 9.5% renter demand figure does not clarify the specific number of Section 8 eligible tenants. Lastly, the lack of direct comparison between voucher payments and market rents leaves questions about future financial sustainability. Careful consideration and ongoing monitoring of these factors are necessary for successful investment.
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.