Location: Merced, CA | Metro: Fresno, 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 | $1,220 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $291,851 | 0.51% | F |
| 3BR | $2,090 | $358,463 | 0.58% | F |
| 4BR | $2,400 | $410,085 | 0.59% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 93620, Dos Palos, CA, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1,250, which exceeds the average market rent of $1,027 as reported by the Census ACS. This means that voucher tenants will generally provide positive cash flow to landlords, as the FMR covers the typical market rate and offers a buffer above it.
To further understand the investment potential, consider the median home value in Dos Palos, which stands at $362,648. Given the average market rent of $1,027, the rent-to-price ratio can be calculated as approximately 0.34%, indicating that rental income alone would not cover the mortgage payment on a median-priced home. However, this does not diminish the attractiveness of the area for rental investments, especially those focused on cash flow through Section 8 vouchers.
The dynamics between renting and buying in Dos Palos suggest that the market is primarily driven by rental opportunities rather than homeownership. With the median Days on Market (DOM) being N/A and the percentage of homes that have been discounted being N/A%, it's clear that these metrics do not significantly impact the decision-making process for investors in this area. Instead, the focus should remain on the robustness of the rental market and the reliability of Section 8 payments.
The strongest angle for investors in ZIP 93620 is cash flow. The discrepancy between the HUD FMR and the average market rent ensures that landlords can expect consistent and reliable income from voucher tenants, making this a solid investment choice for those seeking steady returns.
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.