Location: Chico, CA | Metro: Chico, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
U.S. Census Bureau data (2024)
The rent math in ZIP 95928, located in Chico, CA, does not favor Section 8 participants. The Fair Market Rent (FMR) set at $1480 for fiscal year 2024 is notably lower than the market rent, which stands at $1,737 according to ZORI. This discrepancy means that landlords who rely solely on Section 8 vouchers will see a significant reduction in their rental income compared to what they could earn in the open market.
Acquisition in this area is relatively affordable. With a median home value of $462,531, potential investors can enter the market without facing exorbitant costs. Additionally, the average days on market (DOM) is 18 days, indicating a brisk pace of sales, and only 0.2% of listings have experienced price cuts, suggesting strong seller's confidence and stability in property values.
Tenant demand is robust in ZIP 95928. The population of 37,409 supports a substantial rental market, with 57.6% of residents being renters. This high renter share ensures a steady pool of potential tenants, which is crucial for maintaining occupancy rates and ensuring a consistent income stream for landlords.
In conclusion, while the rent math does not work in favor of Section 8 landlords due to the lower FMR compared to the market rent, the acquisition costs remain reasonable and the local economy supports a strong tenant demand. Investors should carefully weigh these factors before deciding to participate in the Section 8 program in this area, considering whether the reduced rental income aligns with their investment goals and financial expectations.
Data Sources: FMR data from HUD (2027). 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.