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 95967 reveals critical insights for landlords and small-portfolio investors considering investment in this area.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 95967 in fiscal year 2024 is set at $1430. However, without specific market rent data, it's challenging to determine if this aligns with what tenants are willing to pay. This gap in information suggests a need for further research to ensure that rental properties can be priced competitively while still being profitable.
Regarding the affordability of acquisitions, the median home value is not provided, which makes it difficult to assess the cost of purchasing properties. Additionally, the days on market (DOM) and the percentage of homes requiring price cuts are also unspecified. These metrics are crucial for understanding how quickly homes sell and the frequency of needing to adjust asking prices, both of which affect the overall cost and feasibility of acquiring new properties.
Tenant demand is another key consideration. The population and the percentage of renters in ZIP 95967 are not specified, leaving uncertainty about the size of the potential tenant pool and their willingness to rent. Without these figures, it's hard to gauge the likelihood of finding tenants who can afford the $1430 FMR and are interested in renting properties.
Verdict: While the Fair Market Rent provides a benchmark for rental pricing at $1430, the lack of specific market rent, median home values, days on market, price cut percentages, and tenant demographics data hinders a comprehensive analysis. Landlords and investors should conduct thorough local market research to fill these gaps before making investment decisions in ZIP 95967. The absence of detailed data suggests caution and the necessity for due diligence to ensure profitability and demand alignment.
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.