Location: Fresno, CA | Metro: Fresno, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
To determine if you should buy in ZIP 93755 for Section 8 investments, follow these steps:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 93755 in fiscal year 2024 is $1440. Calculate whether this amount can cover the debt service on your property. If the FMR does not clear the debt service, do not proceed with the purchase. For instance, if your monthly mortgage payment plus other expenses exceed $1440, then the answer is No.
Step 2: Market Rent Comparison
Compare the FMR of $1440 with the market rent in the area. Unfortunately, the exact market rent figure for 93755 is not available. However, if the market rent is significantly higher than the FMR, it might indicate that Section 8 tenants will struggle to find properties they can afford, leading to lower demand. If the market rent is equal to or slightly below the FMR, there could be a balance between affordability and profitability. This step requires additional research to ascertain the market rent. Without precise data, the decision here is It Depends.
Step 3: Rental Demand Assessment
Evaluate the rental demand in ZIP 93755. The percentage of renters and the days on market (DOM) are key indicators. The exact percentage of renters and the DOM for 93755 is also not provided. Typically, a high percentage of renters and a low DOM suggest strong demand. Conversely, a low percentage of renters and a high DOM might mean weaker demand. Again, without specific numbers, the assessment is It Depends.
In conclusion, the decision to invest in ZIP 93755 for Section 8 properties hinges on the ability of the FMR to cover your debt service. Beyond that, the viability depends on the local market rent and the strength of rental demand, which require further investigation into the specific figures for ZIP 93755.
Data Sources: FMR data from HUD (2027).
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.