Location: Chico, CA | Metro: Chico, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
The analysis of ZIP code 95929 within the Chico, CA MSA reveals several key points regarding its viability for Section 8 real estate investments.
First, the rent math does not work favorably for landlords seeking to maximize income through market rents. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $1,630, which is lower than what could potentially be achieved in the open market. However, due to the lack of specific market rent data, it's unclear by how much the market rent exceeds the FMR. This discrepancy suggests that landlords might find themselves undercharging compared to market rates if they rely solely on Section 8 vouchers.
Second, the acquisition cost is not straightforward given the missing data on median home values, days on market (DOM), and the percentage of homes requiring price cuts. Without these figures, it's difficult to assess whether buying properties in this area is affordable relative to other investment opportunities. Landlords and investors should seek additional local market data to determine if property acquisition aligns with their budget and investment strategy.
Third, there is a significant tenant demand in ZIP 95929. With an unspecified population and a high percentage of renters, the area shows promise for rental properties. A larger renter share indicates a higher likelihood of finding tenants who qualify for Section 8 housing assistance, ensuring steady occupancy rates. However, the exact figures for population and renter share are needed to quantify this demand accurately.
In summary, while ZIP 95929 presents a substantial tenant base interested in rental properties, the lower FMR compared to potential market rents means landlords will need to balance income expectations. The affordability of property acquisition remains uncertain without specific data on home values, DOM, and price-cut shares. Investors should proceed cautiously, using the available data to inform their decisions and seeking out additional local market insights to make informed choices about property acquisition and management in this area.
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.