Section 8 Fair Market Rent (FMR) for ZIP 93726 - 2027

Investment Score for ZIP 93726

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,310
1 Bedroom	$1,320
2 Bedrooms	$1,630
3 Bedrooms	$2,260
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,630	$240,915	0.68%	D
3BR	$2,260	$332,673	0.68%	D
4BR	$2,580	$353,674	0.73%	D
5BR	$2,993	$420,187	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93726 (Fresno, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93726, as per the 2026 data, is set at $1620 for a two-bedroom unit. This amount represents 34.9% of the median household income in the area, which stands at $55,771. However, the actual rent for a two-bedroom unit in this ZIP code is significantly higher, with Zillow reporting a median price of $239,286. The price-to-FMR ratio of 12.3x indicates that the actual rental costs far exceed the FMR. For instance, a landlord charging the Zillow median rent would be asking for approximately $1,994 per month, which is well above the $1620 FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. They would likely have to settle for smaller units or properties that are below average quality to stay within the FMR limits. #### Affordability & Renter Profile ZIP code 93726 has a high renter population percentage of 62.6%, indicating that a majority of residents are renters rather than homeowners. With a median household income of $55,771, affordability is a key concern for many residents. The occupancy rate of 95.9% suggests that the market is relatively tight, with few vacant units available. Given the high renter population and limited vacancies, it is likely that competition for rental properties is intense. This tight market condition can drive up rental prices further, making it even harder for low-income households to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 93726 presents a challenging environment for cash flow when adhering strictly to FMR guidelines. The FMR for a two-bedroom unit is $1620, while the actual market rent is around $1,994 per month based on the Zillow median price. This discrepancy means that landlords who want to attract Section 8 tenants must accept a lower rent than what the market demands. To determine the investment grade, we need to consider factors such as vacancy rates, property values, and the overall economic health of the area. With a 95.9% occupancy rate, the risk of vacancy is low, but the potential for higher rents is also limited by the FMR. Additionally, the high renter population percentage suggests that there is a steady demand for rental properties, which could be beneficial for long-term investments. However, the tight market conditions might make it difficult to acquire properties at reasonable prices, especially if investors are looking to purchase units below the Zillow median price. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high renter population and tight market, investors should focus on acquiring smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1320, which is closer to the actual market rent for these types of units. This strategy can help maximize cash flow while still being attractive to Section 8 voucher holders. 2. **Consider Location-Specific Opportunities**: Within ZIP code 93726, certain neighborhoods may offer better opportunities for cash flow-positive investments. Investors should look into areas with slightly lower property values or where the local rental market is less competitive. This could involve analyzing micro-markets within the ZIP code to identify pockets of affordability. 3. **Improve Property Quality**: Since the actual market rent is much higher than the FMR, improving the quality of the property can help justify a higher rent within the FMR limit. For example, a two-bedroom unit with modern amenities and upgrades might command a rent closer to the FMR of $1620, whereas a poorly maintained unit might struggle to reach even this lower threshold. #### Bottom Line Given the high renter population and tight market conditions, ZIP code 93726 is a challenging environment for Section 8-focused investors. The significant gap between FMR and actual market rents makes it difficult to achieve positive cash flow without compromising on property size or quality. Therefore, the recommendation for investors is to **Hold** or **Skip** this ZIP code unless they can find specific opportunities in smaller units or areas with lower property values. If investors decide to enter this market, they should prioritize properties that can be improved to meet higher rental standards within the FMR limit.

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.