Location: Madera County, 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 | $1,980 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $3,900 |
| 5 Bedrooms | $4,524 |
| 6 Bedrooms | $5,067 |
| 7 Bedrooms | $5,472 |
| 8 Bedrooms | $5,746 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,460 | $285,956 | 0.86% | C |
| 3BR | $3,410 | $468,481 | 0.73% | D |
| 4BR | $3,900 | $583,120 | 0.67% | D |
| 5BR | $4,524 | $703,821 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 93720, located in Fresno, CA within the Madera County, CA HUD Metro FMR Area, serves as a strategic component in a Section 8 portfolio. Given the specific metrics provided, it stands out as a cash-flow anchor. This classification is based on the favorable financial margin that exists between the Fair Market Rent (FMR) and the actual market rent.
In fiscal year 2024, the FMR for ZIP 93720 is set at $2160. Comparatively, the market rent is $2,093, indicating a positive spread in favor of landlords participating in the Section 8 program. This means that landlords can receive a higher monthly rental payment from the government than what they would typically charge on the open market, thus enhancing their cash flow.
Additionally, the median home value in ZIP 93720 is $497,900, which is significantly higher than the median income of $105,050. This discrepancy suggests that homeownership might be less accessible for many residents, thereby increasing the demand for rental properties. The high median home value also implies that the area has a relatively stable housing market, reducing the risk of sudden drops in property values.
The 0.2% price-cut share and a 16-day Days on Market (DOM) indicate a competitive but not overly saturated rental market. Landlords can expect to maintain their rental rates without significant adjustments and can reasonably anticipate quick leasing periods.
ZIP 93720's 43.2% renter share further supports its role as a cash-flow anchor. With nearly half of the population renting, there is a steady stream of potential tenants who may qualify for the Section 8 program, ensuring consistent occupancy and income.
To summarize, ZIP 93720 offers a strong financial foundation for a Section 8 portfolio due to its advantageous FMR versus market rent spread, stable median home value, and substantial renter share. These factors combine to make it an ideal location for securing reliable cash flow.
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.