Location: Tehama County, CA | Metro: Chico, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
U.S. Census Bureau data (2024)
ZIP code 95973 is part of Chico, California, a city known for its vibrant community and diverse economy. With a total population of 39,031, it has a significant rental market, comprising 37.9% of the housing units. The median household income in this area stands at $92,813, reflecting a middle-class community. Median home values are notably high at $502,690, indicating a stable and desirable residential environment.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 95973 for fiscal year 2024 is set at $1,530. This figure contrasts with the actual market rent, measured by Zillow's Observed Rental Index (ZORI), which is $1,706. This discrepancy highlights a potential opportunity for landlords who can manage properties efficiently, as they could potentially attract tenants willing to pay above the FMR.
Given these economic conditions, ZIP 95973 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand for rentals and the alignment of FMR with government assistance programs ensure steady cash flow. Meanwhile, hands-on investors can leverage the difference between FMR and market rents to create value through property improvements or management efficiencies, thus capturing a higher rent premium.
The data suggests that the area has a robust tenant base supported by a healthy median income, making it less risky for landlords. Additionally, the relatively high median home values indicate a strong local economy, further supporting the viability of rental investments in this neighborhood.
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.