Location: Madera 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 | $1,350 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $396,845 | 0.39% | F |
| 3BR | $2,160 | $638,072 | 0.34% | F |
| 4BR | $2,610 | $998,095 | 0.26% | F |
U.S. Census Bureau data (2024)
ZIP 93604, located in Bass Lake, CA within Madera County, is best suited as an appreciation play in a Section 8 portfolio strategy. The area's median home value stands at a substantial $638,253, indicating a relatively high-cost housing market. However, the ZIP code exhibits a low 0.1% price-cut share, which suggests that property values are holding steady and there is little need for discounts to facilitate sales.
The HUD Fair Market Rent (FMR) for ZIP 93604 in fiscal year 2024 is set at $1360. While specific market rental rates are not available, the lack of significant price cuts and the stable housing market imply that rental properties in this area could appreciate in value over time. This makes it a good choice for investors looking to capitalize on long-term growth rather than immediate cash flow.
Bass Lake's median income of $134,357 further supports the appreciation play thesis. Higher median incomes often correlate with increased demand for higher-quality housing, which can drive up property values. Additionally, the 0.0% renter share indicates that very few residents rely on rental assistance, suggesting a robust local economy capable of supporting rising property values.
Incorporating ZIP 93604 into a Section 8 portfolio would serve to balance the mix of properties, providing a strong foundation for future value appreciation. Although the immediate cash flow might be constrained due to the lower FMR compared to the median home value, the strategic placement of assets in this area could yield significant returns as the housing market continues to mature and grow.
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.