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 | $1,040 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $179,790 | 0.64% | D |
| 2BR | $1,470 | $235,256 | 0.62% | D |
| 3BR | $2,040 | $315,296 | 0.65% | D |
| 4BR | $2,460 | $380,289 | 0.65% | D |
| 5BR | $2,854 | $382,143 | 0.75% | D |
U.S. Census Bureau data (2024)
Oroville, located in ZIP code 95965 of Butte County, California, stands out due to its unique mix of residents and housing dynamics. With a population of 21,181, Oroville has a significant rental market, with 37.1% of its residents renting their homes. The median household income in this area is $53,198, while the median home value is notably higher at $305,120.
The economic landscape for landlords and small-portfolio investors is shaped by the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 95965 is set at $1,180. In contrast, the Zillow Observed Rent Index (ZORI), which reflects the market rent, is $1,362. This indicates that landlords participating in the Section 8 program can expect to receive less than the market rate, potentially impacting their profitability.
The data signature of ZIP 95965 suggests a transitional environment. While the median home value is relatively high, the median income is below average, indicating a potential strain on residents' ability to afford housing. Additionally, the substantial portion of renters and the gap between FMR and ZORI point towards an evolving market where both government assistance and private investment play critical roles.
For investors, understanding these dynamics is crucial. The higher median home values coupled with a significant rental market suggest opportunities for long-term investment in rental properties. However, the reliance on Section 8 vouchers means that investors must balance the benefits of stable tenants with the lower rents provided by the government.
In summary, ZIP 95965 presents a mixed picture of housing affordability and market conditions. The transitional nature of the area offers both challenges and opportunities for landlords and investors looking to navigate the local real estate market effectively.
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.