Location: Chico, CA | Metro: Chico, CA MSA
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 | $1,140 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $283,449 | 0.56% | F |
| 3BR | $2,220 | $341,378 | 0.65% | D |
| 4BR | $2,680 | $408,563 | 0.66% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP 95917 in Biggs, CA, include significant tenant turnover due to the disparity between the market rent of $898 and the Fair Market Rent (FMR) of $1590 for FY 2024. This gap suggests that tenants might find it challenging to afford the higher FMR, leading to frequent moves and high vacancy rates. Vacancy exposure is heightened by the lack of data on the average days on market (DOM), which indicates uncertainty about how quickly units can be filled. Additionally, there is a notable risk of deferred maintenance, given the typical home value of $343,529 and the median income of $90,563. The lower median income compared to the home value implies that landlords may struggle to maintain properties to the required standards without incurring significant financial strain.
However, these risks must be weighed against the high concentration of renters in the area, with 29.4% of residents being renters. High renter density typically correlates with increased demand for housing vouchers, such as Section 8. This demand can provide a steady stream of tenants who are financially supported through government subsidies, potentially mitigating some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 95917 is moderate.
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.