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 | $1,330 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $197,743 | 0.83% | C |
| 3BR | $2,280 | $395,694 | 0.58% | F |
| 4BR | $2,620 | $433,752 | 0.6% | D |
| 5BR | $3,039 | $490,283 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,410 for ZIP 93710 in fiscal year 2024 can adequately cover the mortgage on a home valued at $400,297. To evaluate this, consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment on a $400,297 home would be approximately $2,100. This amount exceeds the FMR, indicating that additional income sources or a higher rental rate may be necessary to ensure profitability.
The percentage of renters in ZIP 93710 stands at 57.8%. While this figure is significant, it does not guarantee strong demand. However, Fresno's population growth and job market trends suggest a steady need for rental housing. According to recent data, Fresno has seen modest population increases, which should support continued rental demand. Additionally, the local economy, driven by agriculture and manufacturing, provides stable employment opportunities, further bolstering the rental market.
Regarding the ability of Housing Choice Vouchers to keep pace with market rents of $1,553, the FMR of $1,410 suggests that voucher holders may struggle to afford units at the higher end of the market. Landlords must weigh the benefits of accepting vouchers, such as guaranteed payments, against the potential for lower rental income. While vouchers do help low-income tenants secure housing, they may not cover the full market rent, leading to a possible shortfall for landlords.
In conclusion, while the data presents some challenges, the overall economic conditions and demographic trends in ZIP 93710 indicate a reasonable opportunity for investment. Careful consideration of these factors will be crucial in determining the feasibility of a rental property venture.
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.