Section 8 Fair Market Rent (FMR) for ZIP 95926 - 2027

Investment Score for ZIP 95926

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	$1,090
1 Bedroom	$1,220
2 Bedrooms	$1,550
3 Bedrooms	$2,150
4 Bedrooms	$2,590
5 Bedrooms	$3,004
6 Bedrooms	$3,364
7 Bedrooms	$3,633
8 Bedrooms	$3,815

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
1BR	$1,220	$239,699	0.51%	F
2BR	$1,550	$328,127	0.47%	F
3BR	$2,150	$438,891	0.49%	F
4BR	$2,590	$538,121	0.48%	F
5BR	$3,004	$617,469	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 95926 (Chico, CA) The ZIP code 95926 is located in Chico, Butte County, California. With a population of 40,567, it has a significant renter base, accounting for 59.5% of households. The occupancy rate stands at 92.2%, indicating a relatively robust demand for housing in the area. The median household income is $61,920, which provides a context for affordability and economic conditions. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for 2026 in ZIP 95926 are as follows: - 0BR: $1190 - 1BR: $1310 - 2BR: $1670 (which is 32.4% of the median income) - 3BR: $2320 - 4BR: $2800 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, comparing these figures to actual rents reveals significant constraints. For instance, the Zillow median price for a 2BR unit is $328,567, while the FMR for a 2BR unit is only $1670. This implies that the price-to-FMR ratio is 16.4x, meaning that the actual rental prices are substantially higher than what the FMR allows. Voucher holders face considerable challenges in finding affordable housing within their budget. A 2BR unit priced at $1670 would be considered extremely affordable compared to the median rental price, making it difficult for voucher holders to find units that fit within their limits. ### Affordability & Renter Profile Given that 59.5% of households are renters, the market is heavily dependent on rental properties. The median household income of $61,920 suggests that many residents have limited financial resources, especially when considering the high cost of living relative to income. The fact that the FMR for a 2BR unit is only 32.4% of the median income highlights the strain on low-income families to afford decent housing. The occupancy rate of 92.2% indicates that there is a strong demand for housing, but the high price-to-FMR ratio suggests that the market is tight for those relying on Section 8 vouchers. It is likely that the majority of renters in this ZIP code are middle-class individuals who can afford the higher rents, while low-income families struggle to find suitable housing. ### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the Zillow median price of $328,567 for a 2BR unit and the FMR of $1670, the actual rental prices are much higher than the FMR. This means that investors focusing solely on Section 8 vouchers will face significant challenges in finding properties that generate positive cash flow at the FMR rates. However, if we consider the broader rental market, the high actual rental prices suggest that there is potential for positive cash flow if investors can secure tenants willing to pay above the FMR. The price-to-FMR ratio of 16.4x indicates that the market is not aligned with the FMR, making it less favorable for Section 8-focused investments. ### Specific Actionable Insights 1. **Focus on Middle-Class Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting middle-class tenants who can afford higher rents. This strategy would likely yield better cash flow outcomes. For example, a 2BR unit priced at $1670 might struggle to attract tenants, whereas a unit priced closer to the Zillow median of $328,567 could be more appealing. 2. **Consider Location-Specific Pricing**: Investors should analyze specific neighborhoods within ZIP 95926 to identify areas where rental prices might be closer to the FMR. This could involve targeting lower-cost areas or smaller units that are more likely to fall within the FMR range. For instance, a 1BR unit priced at $1310 might be more feasible in certain parts of the ZIP code. 3. **Evaluate Property Management Costs**: Since the FMR is significantly lower than the actual rental prices, investors should carefully evaluate property management costs and other expenses to ensure profitability. Even if a property is rented at the FMR, the overall costs might still result in negative cash flow. Therefore, it is crucial to manage costs effectively. ### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation is to **skip** ZIP 95926 due to the high price-to-FMR ratio and the difficulty in finding properties that generate positive cash flow at the FMR levels. The market dynamics indicate that the actual rental prices far exceed the FMR, making it challenging for voucher holders to find suitable housing. Instead, investors should consider areas with a more favorable alignment between FMR and actual rental prices. If investors are willing to target a broader tenant pool, they might find opportunities for positive cash flow, but this would require a different investment strategy.

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.