Section 8 Fair Market Rent (FMR) for ZIP 93706 - 2027

Investment Score for ZIP 93706

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	$1,220
1 Bedroom	$1,220
2 Bedrooms	$1,500
3 Bedrooms	$2,090
4 Bedrooms	$2,400
5 Bedrooms	$2,784
6 Bedrooms	$3,118
7 Bedrooms	$3,367
8 Bedrooms	$3,535

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
2BR	$1,500	$235,243	0.64%	D
3BR	$2,090	$290,024	0.72%	D
4BR	$2,400	$323,980	0.74%	D
5BR	$2,784	$348,831	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93706 (Fresno, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93706 in 2026 is set at $1400 for a two-bedroom unit. This amount represents 41.0% of the median household income in the area, which is $40,930. To understand how FMR compares to actual rents, we can look at the Zillow median price for a two-bedroom unit, which stands at $234,376. The price-to-FMR ratio is 14.0x, indicating that the actual rent prices are significantly higher than the FMR. For instance, if a two-bedroom unit costs $234,376, the monthly rent would be approximately $1953, far exceeding the $1400 FMR limit. This creates significant constraints for voucher holders. They must find units that cost no more than $1400 per month for a two-bedroom unit, which is challenging given the high actual rent prices. Additionally, landlords have the discretion to accept or reject vouchers, and the low FMR compared to market rates might discourage some from participating in the program. #### Affordability & Renter Profile ZIP code 93706 has a population of 40,638, with 64.6% of residents being renters. This high percentage suggests a strong demand for rental housing in the area. The occupancy rate of 95.7% further supports this notion, indicating that the majority of available units are already occupied. Given these factors, it appears that the market is relatively tight, with limited supply meeting the high demand. The median household income of $40,930 is quite low, suggesting that many residents rely on assistance such as Section 8 vouchers to afford housing. However, even with the vouchers, the gap between FMR and actual rent prices remains substantial, making it difficult for many residents to secure affordable housing. #### Investor Angle From an investor perspective, the ZIP code 93706 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1400, while the actual rent price based on the Zillow median is approximately $1953. This means that if an investor were to rent out a property at the FMR, they would be operating at a significant discount compared to the market rate. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of $1000 in total monthly expenses, an investor would still be left with a net loss of $553 per month when renting at the FMR. This makes it financially unviable to operate solely on FMR without additional subsidies or incentives. In terms of investment grade, the ZIP code 93706 would likely be rated as medium to low due to the tight market conditions and the difficulty in finding properties that can be rented out profitably at the FMR. Investors should carefully evaluate their risk tolerance and financial situation before considering investments in this area. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units like one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1140, which is closer to the actual rent prices. This could provide a better chance for cash flow positivity. 2. **Seek Government Subsidies**: Investors should explore government subsidies and programs that offer additional financial support beyond the standard Section 8 voucher. For example, the Housing Choice Voucher Program often has supplementary funding mechanisms that can help bridge the gap between FMR and market rates. 3. **Consider Long-Term Rental Agreements**: Another strategy could be to negotiate long-term rental agreements with tenants who use Section 8 vouchers. This could provide stability and potentially offset the lower rental income over time. #### Bottom Line Given the tight market conditions and the significant gap between FMR and actual rent prices, the recommendation for Section 8-focused investors in ZIP code 93706 is to **Skip** this area unless they can secure additional subsidies or have a strategic plan to manage the financial risks involved. The high price-to-FMR ratio and the low median household income make it challenging to achieve positive cash flow at FMR levels, and the overall investment grade is considered low due to these factors.

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.