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 | $1,510 |
| 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 | $1,510 | $286,874 | 0.53% | F |
| 3BR | $2,090 | $388,048 | 0.54% | F |
| 4BR | $2,400 | $458,190 | 0.52% | F |
| 5BR | $2,784 | $542,699 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 93657, which encompasses Sanger, CA, in Fresno County, are straightforward when you break them down. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1350 per month for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the unique rental conditions here.
In contrast, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $2,135 per month. This higher figure represents the average rent that tenants might pay out-of-pocket without a voucher. However, the SAFMR is the ceiling for what HUD (Department of Housing and Urban Development) will reimburse through the Section 8 program.
A landlord participating in Section 8 receives a monthly rental payment that includes both the voucher subsidy and the tenant's contribution. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, they would likely contribute around $300-$400 towards the rent, depending on their specific financial situation.
In addition to the tenant's portion, there are utility allowances to consider. These vary but generally provide extra funds for electricity, water, and other utilities. For a two-bedroom unit, these allowances can range from $100 to $200 per month, further supplementing the total payment received by the landlord.
To illustrate, if a tenant contributes $350 and receives a utility allowance of $150, the total reimbursement to the landlord would be $1350 (SAFMR) + $350 (tenant contribution) + $150 (utility allowance) = $1850. This amount is less than the local market rent of $2,135, indicating a reimbursement gap of approximately $285 per month.
Summary:
This reimbursement gap is the difference between the local market rent and what a landlord receives under the Section 8 program. It is important for landlords to factor this into their decision-making process when considering participation in the program. Despite the lower overall rent compared to market rates, many landlords find the stability and support provided by Section 8 to be advantageous.
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.