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 |
The economics of Section 8 in ZIP code 93790, located in Fresno County, California, revolve around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is $1440. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant under the Section 8 program.
The SAFMR does not reflect the actual local market rent, which is currently unavailable due to lack of data. However, it's crucial for landlords to understand that the total rent received from a tenant using a Section 8 voucher is composed of two parts: the tenant's portion and the voucher payment from the housing authority.
The tenant's portion is generally calculated as 30% of their adjusted monthly income. If we consider an average adjusted monthly income of $1600 for tenants in this area, the tenant would be responsible for $480 towards the rent. The remainder, up to the SAFMR of $1440, is covered by the housing authority.
In addition to the base rent, the housing authority also provides utility allowances. These allowances can vary but typically cover a significant portion of the tenant's utility costs. For a two-bedroom unit, the utility allowance might range from $200 to $300 per month, depending on the specifics of the local program.
To illustrate, if a landlord charges $1440 for a two-bedroom apartment and the tenant's portion is $480, the housing authority would cover the remaining $960. With a utility allowance of $250, the landlord effectively receives $1210 ($960 + $250) from the housing authority and $480 from the tenant, totaling $1690 per month.
This scenario assumes that the rent charged does not exceed the SAFMR. If the landlord sets the rent above $1440, the housing authority will still only pay up to $1440, leaving the landlord to either reduce the rent or accept a lower reimbursement rate.
In ZIP 93790, given the SAFMR of $1440 and assuming a local market rent that is higher, there could be a reimbursement gap where landlords receive less than they charge. Conversely, if the local market rent is below $1440, landlords might see a surplus, receiving more than the typical market rate.
Landlords should carefully consider these factors when deciding whether to participate in the Section 8 program in ZIP 93790. The reimbursement gap or surplus for a two-bedroom unit, based on the SAFMR and the assumed tenant portion and utility allowance, would be $250 per month, indicating a potential surplus if the local market rent is lower than the SAFMR.
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.