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 | $1,250 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $262,608 | 0.59% | F |
| 3BR | $2,150 | $352,774 | 0.61% | D |
| 4BR | $2,460 | $411,885 | 0.6% | F |
| 5BR | $2,854 | $463,499 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 93662 (Selma, CA) reveals a significant disparity between the Federal Market Rent (FMR) and the actual market rents, impacting potential investment yields.
Based on the Fair Market Rent (FMR) for a 2-bedroom unit set at $1380 annually for FY 2024, the implied gross yield can be calculated. With an average annual rent of $1380, the annual rental income for a property would be approximately $16,560. Given the median home value in Selma, CA, stands at $363,988, the gross yield using the FMR is about 4.55%. This calculation is derived from the formula: (Annual Rent / Property Value) * 100 = Gross Yield.
In contrast, using the Zillow Observed Rent Index (ZORI) which indicates a market rent of $1,883 per month, the annual rental income increases to roughly $22,596. Applying the same median home value, the gross yield based on market rent is significantly higher at approximately 6.21%.
To determine which scenario is more realistic, consider the 41.2% renter density in Selma, CA. While this suggests a moderate level of demand for rental properties, the lack of data on Days on Market (DOM) makes it difficult to assess how quickly properties are leased. However, the higher market rent of $1,883 per month aligns better with investor expectations and the general economic conditions in the area, making a 6.21% gross yield more plausible.
The lower FMR-based yield of 4.55%, while still positive, does not reflect the true market dynamics and could lead to underestimating the potential returns for an investment property. Therefore, for a realistic assessment, investors should lean towards the higher gross yield figure of 6.21% when considering Section 8 participation in ZIP 93662.
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.