Location: Fresno, CA | Metro: Fresno, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 93606 are structured around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1300. This figure represents the maximum amount that the housing authority will pay on behalf of the tenant under a Section 8 voucher program.
In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, is $971. This discrepancy highlights the potential financial benefit for landlords who participate in the Section 8 program in this specific area.
To understand the actual payment structure, it's essential to break down the components of the voucher reimbursement. The total reimbursement includes both the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards rent, while the remaining amount is covered by the voucher.
The utility allowance varies but is generally a fixed amount designed to cover the tenant's electricity, gas, water, and sewer costs. For ZIP 93606, this allowance is not explicitly stated in the provided data; however, it can be added to the tenant's portion to determine the full reimbursement amount.
For example, if a tenant's portion of the rent is $300 and the utility allowance is $150, the total reimbursement would be $450 plus the SAFMR cap of $1300. However, since the local market rent is only $971, the actual reimbursement would be the sum of the tenant's portion and the utility allowance, up to the market rent of $971.
This means that in ZIP 93606, landlords participating in the Section 8 program will receive a reimbursement that covers the local market rent of $971. Given the SAFMR of $1300, there is no risk of receiving less than the market rate due to the voucher program. In fact, the reimbursement is guaranteed to meet the local market rent, ensuring that landlords do not face a shortfall.
The typical reimbursement gap or surplus in ZIP 93606 is a surplus. Landlords receive the full market rent of $971, which is lower than the SAFMR of $1300. Therefore, they are not left with a gap between the market rent and the voucher reimbursement. Instead, the economic structure supports landlords by aligning the voucher reimbursement closely with the local rental market rates.
For landlords in ZIP 93606, the decision to accept Section 8 vouchers should be made with an understanding that the reimbursement will match the local market conditions, providing a stable and predictable source of income.
Data Sources: FMR data from HUD (2027). 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.