Section 8 Fair Market Rent (FMR) for ZIP 93702 - 2027

Investment Score for ZIP 93702

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,250
2 Bedrooms	$1,540
3 Bedrooms	$2,130
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,250	$164,842	0.76%	D
2BR	$1,540	$230,966	0.67%	D
3BR	$2,130	$275,064	0.77%	D
4BR	$2,440	$317,240	0.77%	D
5BR	$2,830	$344,438	0.82%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93702 (Fresno, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93702, as set by HUD for 2026, is $1530 for a two-bedroom unit. This amount represents 38.9% of the median household income in the area, which stands at $47,229. Actual rents in the market, however, are significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $232,722, resulting in a price-to-FMR ratio of 12.7x. This suggests that the actual rental market is far above the FMR levels, creating significant constraints for voucher holders. For instance, a voucher holder would struggle to find a two-bedroom unit renting for $1530, given the market rates are much higher. #### Affordability & Renter Profile ZIP code 93702 has a high renter population of 64.4%, indicating a strong demand for rental properties. The occupancy rate of 95.2% further supports this notion, showing that there is little vacancy in the rental market. Given the median household income of $47,229, the majority of renters are likely to be low-income families who rely heavily on government assistance such as Section 8 vouchers. The high renter percentage and occupancy rate suggest that this is a tight market where supply is constrained relative to demand, making it challenging for renters to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 93702 presents a mixed picture. While the high occupancy rate indicates strong demand, the actual rental market prices are substantially higher than the FMRs. A two-bedroom unit renting for $1530 would be considered extremely affordable in this market, where the median price is $232,722. However, the high price-to-FMR ratio means that properties rented at FMR levels would likely generate negative cash flow, as they would be below market rates. Therefore, the investment grade for properties rented at FMR levels would be relatively low due to the potential for financial losses. #### Specific Actionable Insights 1. **Focus on Units Below Market Rates**: Investors should consider acquiring units that can be rented below the market rate but still within the FMR range. For example, a one-bedroom unit renting at $1250 could be a viable option if it meets the needs of Section 8 voucher holders and is priced appropriately to avoid negative cash flow. 2. **Target Larger Properties**: Given that the FMR for larger units (e.g., three-bedroom at $2130 and four-bedroom at $2450) is closer to the median household income, investors might find better opportunities in larger units. These units are more likely to be rented out at FMR levels without significant financial strain, as they align more closely with the income levels of residents. #### Bottom Line For Section 8-focused investors, the ZIP code 93702 is a **Skip** recommendation. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow when renting properties at FMR levels. Additionally, the limited availability of units renting at or below FMR levels means that finding suitable investments will be challenging. Investors should look for areas with lower price-to-FMR ratios or higher FMRs relative to median household incomes to ensure a more financially sustainable investment strategy.

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.