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 | $1,260 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,160 | $302,033 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 93668 provides a detailed look at potential investment returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $1450 per month, while the Census ACS reports the average market rent at $1,228 per month. Using these figures against the median home value of $288,653, we can derive two distinct gross-yield scenarios.
First, let's consider the Section 8 scenario. With an annualized FMR of $17,400 ($1450 x 12), the implied gross-yield is approximately 6%. This is calculated by dividing the annual rental income by the median home value. For context, this means that if you were to purchase a property in ZIP 93668 for the median price, your annual rental income under the Section 8 program would be about 6% of your total investment.
Next, we'll examine the market rent scenario. An annualized market rent of $14,736 ($1,228 x 12) translates into a gross-yield of roughly 5%. This calculation similarly divides the annual rental income by the median home value. Thus, investing at market rates would yield a slightly lower return compared to the Section 8 program.
The 37.6% renter density in ZIP 93668 suggests a moderate demand for rental properties, making it a viable market for both Section 8 and market-rate rentals. However, the lack of Days on Market (DOM) data makes it difficult to assess the speed at which properties might be leased, particularly under the Section 8 program. Given the higher gross-yield under the Section 8 program, it appears to be the more attractive option for landlords looking to maximize their returns. Nevertheless, the stability and security of Section 8 rents should also be considered, as they are government-backed and less susceptible to market fluctuations.
In summary, the gross-yield for a 2BR property in ZIP 93668 is 6% under the Section 8 program and 5% at market rates. While both scenarios offer reasonable returns, the Section 8 program provides a marginally better gross-yield and the added benefit of stable, government-backed income. Investors should weigh these factors carefully when deciding between Section 8 and market-rate investments.
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.