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 | $2,030 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $4,000 |
| 5 Bedrooms | $4,640 |
| 6 Bedrooms | $5,197 |
| 7 Bedrooms | $5,613 |
| 8 Bedrooms | $5,894 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,520 | $567,003 | 0.44% | F |
| 3BR | $3,490 | $462,594 | 0.75% | D |
| 4BR | $4,000 | $513,184 | 0.78% | D |
| 5BR | $4,640 | $597,689 | 0.78% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 93723 under the Section 8 program are significant. Firstly, tenant turnover poses a substantial challenge. The market rent in this area is approximately $2,500, whereas the Fair Market Rent (FMR) for FY 2024 is set at $2,160. This discrepancy means that landlords might face higher turnover rates as tenants seek to match their income with the rent they can afford. Secondly, vacancy exposure is another critical issue. With the days on market (DOM) being N/A, it's unclear how quickly properties will be filled once they become vacant, leaving landlords vulnerable to periods without rental income. Lastly, deferred maintenance is a notable risk. Given the typical home value of $514,974 and the median income of $128,725, homeowners may struggle to keep up with necessary repairs and improvements, which could affect property values and rental stability over time.
However, these risks must be weighed against the high demand for rental housing in the area. The renter share in ZIP 93723 stands at 19.6%, indicating a dense population of renters who are likely to rely on Section 8 vouchers. High renter density generally translates into higher demand for subsidized housing, making it easier for landlords to find qualified tenants. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, despite the challenges, the high renter density suggests that there is a robust market for Section 8 properties in ZIP 93723. However, the significant gap between market rent and FMR, along with the lack of data on DOM, points to moderate risk for a first-time Section 8 landlord.
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.