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 | $1,060 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $219,777 | 0.68% | D |
| 3BR | $2,080 | $296,668 | 0.7% | D |
| 4BR | $2,510 | $379,856 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 95954, located in Magalia, CA, falls within the Chico, CA Metropolitan Statistical Area (MSA). Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1,360, while the average market rent is slightly higher at $1,441. The median home value in 95954 is $271,211, and the renter share stands at 15.9%.
To contextualize these figures within the broader Chico, CA MSA, it's important to compare them against typical ZIP codes in the area. The FMR and market rent figures are relatively close, indicating that the rental market in 95954 is aligned with the government's assessment of fair rents. This suggests that landlords can expect to receive reasonable returns on their investments without overcharging.
The median home value of $271,211 is indicative of a middle-tier neighborhood within the Chico MSA. This figure is neither exceptionally low nor high, suggesting that properties in 95954 are priced in line with the overall housing market trends in the region.
The renter share of 15.9% is noteworthy because it is higher than what might be expected given the home values. Typically, ZIP codes with higher renter shares and lower home values are attractive to Section 8 tenants due to affordability. However, in this case, the home values are not notably below the metro average, which could mean that the ZIP code is still accessible but not necessarily a sweet spot for Section 8 housing.
In summary, ZIP 95954 appears to be a mid-tier neighborhood within the Chico, CA MSA. It offers a balance between rental income and property values, making it suitable for landlords and small-portfolio investors looking for stable investment opportunities. While the higher renter share does suggest some interest from Section 8 tenants, the home values indicate that it is not an especially affordable pocket within the metro area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.