Section 8 Fair Market Rent (FMR) for ZIP 93773 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 93773, located in Fresno County, California, operate under specific parameters that landlords need to understand to manage their expectations regarding rental income. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1440. This figure is crucial because it represents the maximum amount that the housing authority will reimburse a landlord for rent.

Let's break down how this works in practice. The SAFMR is designed for this specific ZIP code, meaning it reflects the local rental market conditions more accurately than a broader metro or county-level figure would. However, the local market rent for a two-bedroom unit in ZIP 93773 is currently unavailable, which makes direct comparisons challenging. Nonetheless, landlords should be aware that the SAFMR does not necessarily align with the local market rates, and they might find themselves renting below market value if they choose to participate in the Section 8 program.

A voucher payment consists of two parts: the tenant's contribution and the housing authority's reimbursement. The tenant's portion is typically 30% of their adjusted income. If we assume an average adjusted income of $1800 per month for a household eligible for a Section 8 voucher, the tenant would contribute $540 towards the rent. The remainder, up to the SAFMR limit, is covered by the housing authority.

In ZIP 93773, the housing authority also provides utility allowances. These can vary but often include allowances for electricity, gas, water, and trash removal. Let's say the total utility allowance averages around $200 per month. This allowance is separate from the rent and is paid directly to the tenant to cover their utility expenses.

To calculate the typical reimbursement gap or surplus, consider a scenario where the total rent and utilities are $1640 ($1440 rent + $200 utilities). With the tenant contributing $540, the housing authority would pay out the remaining $900 to meet the SAFMR. Therefore, the landlord would receive a total of $1440 ($540 from the tenant + $900 from the housing authority).

This leaves a potential shortfall of $200 per month if the landlord was expecting to charge the full $1640 for rent and utilities. Alternatively, if the landlord sets their rent at $1440, they would have no shortfall, and the tenant's contribution plus the housing authority's reimbursement would cover the entire rent amount without additional utility costs.

Landlords should carefully evaluate these numbers when deciding whether to participate in the Section 8 program. While the SAFMR ensures a steady income, it may not match the local market rent, creating a financial gap that must be managed. In ZIP 93773, the reimbursement gap for a two-bedroom apartment is likely to be a deficit of $200 per month, assuming the landlord wishes to charge closer to the hypothetical $1640 figure.

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.