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 | $1,220 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,220 | $146,997 | 0.83% | C |
| 2BR | $1,500 | $192,598 | 0.78% | D |
| 3BR | $2,090 | $307,060 | 0.68% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 93721, located in Fresno, California, involve understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1210. This figure represents the maximum amount that a Section 8 housing voucher will cover for rent in this area.
In contrast, the local market rent for a similar two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1249. This means landlords in ZIP 93721 can expect the market to slightly exceed the SAFMR for a two-bedroom unit.
A landlord participating in the Section 8 program receives payments based on the SAFMR, but the actual reimbursement depends on the tenant's portion and utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the calculation would be as follows:
Let’s say a tenant has an adjusted income of $1600 per month. Their share of the rent would be 30% of this amount, which is $480. This is the amount they would pay directly to the landlord. The remaining amount up to the SAFMR is covered by the housing authority. Therefore, the voucher would reimburse the landlord the difference between the tenant's payment and the SAFMR.
In this case, the voucher would cover the rest of the SAFMR, which is $1210 minus the tenant's $480, resulting in a reimbursement of $730. Additionally, there are utility allowances that can vary, but let’s assume a standard allowance of $200. This brings the total reimbursement to $930.
Given the local market rent of $1249, the reimbursement gap for a landlord would be the difference between the market rent and the total reimbursement from the voucher. In ZIP 93721, this gap amounts to $1249 minus $930, leaving a shortfall of $319 per month. This means landlords would need to consider this gap when deciding whether to accept Section 8 tenants in their properties.
To summarize, landlords in ZIP 93721 who participate in the Section 8 program can expect to receive a total reimbursement of approximately $930 for a two-bedroom apartment, leading to a typical reimbursement gap of $319 compared to the local market rent.
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.