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 | $1,680 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $305,205 | 0.68% | D |
| 3BR | $2,890 | $478,107 | 0.6% | D |
| 4BR | $3,310 | $650,575 | 0.51% | F |
| 5BR | $3,840 | $1,009,258 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,770 for ZIP 93711 (Fresno, CA) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $514,409. According to recent market trends, the median home value in ZIP 93711 is approximately $509,927, which aligns closely with the home price in question. To determine if the FMR will cover the mortgage, it is essential to consider the interest rate and term length. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 5%, the monthly mortgage payment on a $514,409 home would be roughly $2,750. Therefore, the FMR of $1,770 would not cover the mortgage, suggesting that landlords need to secure higher rents or consider alternative sources of income.
Another concern could be the level of renter demand, given that only 36.0% of the population in ZIP 93711 rents their residence. This figure indicates a moderate demand for rental properties. However, the rental market in ZIP 93711 is active, with the median rental price being around $2,075 per month. This suggests that while the demand is not overwhelming, there is still a significant number of renters willing to pay competitive rates for quality housing. Landlords should focus on maintaining properties to attract these renters.
The final objection is whether the rental assistance vouchers will keep pace with the market rents of $2,066. The current voucher amount of $1,770 is below the market rate, indicating that landlords who rely solely on vouchers may face challenges in covering operating costs and maintaining profitability. However, landlords can mitigate this risk by targeting non-voucher tenants or seeking out higher voucher amounts through local housing authorities. It's also important to note that voucher programs often adjust their payments periodically to reflect changes in the market, although the exact timing and extent of these adjustments are uncertain.
In summary, while the rental market in ZIP 93711 presents some challenges, particularly in terms of covering mortgage expenses and keeping pace with market rents, there is still a viable opportunity for landlords and small-portfolio investors. Attention to property maintenance and strategic tenant selection can help navigate these concerns effectively.
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.