Location: Fresno, 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 |
|---|---|---|---|---|
| 3BR | $2,090 | $306,674 | 0.68% | D |
| 4BR | $2,400 | $369,235 | 0.65% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 93640, part of the Fresno, CA HUD Metro FMR Area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1160 for FY 2024 is significantly higher than the actual market rent of $982 as reported by the Census ACS. This discrepancy suggests that landlords may find it challenging to justify charging the higher FMR rate to tenants.
Acquisition of properties in this area is relatively affordable, given the median home value stands at $328,149. However, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts indicates that there might be inefficiencies or limited data transparency in the local real estate market. Landlords should proceed with caution and conduct thorough due diligence before making any acquisitions.
Tenant demand in ZIP 93640 is strong, with a total population of 14,657 and a significant 57.2% of residents being renters. This high proportion of renters suggests that there is a robust market for rental properties, providing landlords with a good chance of finding tenants.
In summary, while the high renter share in ZIP 93640 supports tenant demand, the unfavorable comparison between the FMR and market rent rates poses a challenge for landlords. Additionally, the median home value makes property acquisition reasonably affordable, but the absence of key metrics such as DOM and price-cut percentages means that further investigation is necessary to fully assess the local real estate market's dynamics. Landlords should carefully evaluate their investment strategies in light of these factors to ensure profitability.
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.