Location: Visalia, 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 | $1,260 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $286,042 | 0.55% | F |
| 3BR | $2,180 | $372,181 | 0.59% | F |
| 4BR | $2,500 | $435,766 | 0.57% | F |
| 5BR | $2,900 | $492,108 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 93654, located in Reedley, CA, presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $1,400 for fiscal year 2024, compared to the market rent of $1,291, there is a notable potential for higher rental yields. The median home value stands at $386,665, which is significantly lower than the FMR, suggesting that the area offers relatively affordable entry points for property acquisition.
The stability of the market can be gauged through several factors. Firstly, 44.2% of the population are renters, indicating a consistent demand for rental properties. However, the lack of data on days on market (DOM) suggests some uncertainty regarding the speed of property turnover, which could impact cash flow and investment returns. The median household income of $65,574 provides insight into the financial capacity of residents, though it is important to note that this figure alone does not fully determine the stability of the rental market.
Based on these figures, ZIP 93654 leans towards being a steady-cashflow zone. The higher FMR compared to the market rent indicates a potential for better yields, but the significant proportion of renters and the median income suggest a stable tenant base. This stability is crucial for long-term investment strategies, ensuring a reliable stream of rental income over time.
Investors should consider the following:
In conclusion, while ZIP 93654 offers a good opportunity for yield improvement, the existing conditions point more towards a stable, rather than volatile, rental market. This makes it suitable for investors looking to generate steady cash flows with a reasonable upside in rental rates.
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.