Location: Chico, CA | Metro: Chico, CA MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 95974 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover can be a significant issue when comparing the market rent to the Federal Market Rent (FMR) of $1340 for FY 2024. Since the market rent data is unavailable, it's crucial to understand that if the FMR is below the market rent, landlords might face higher turnover rates as tenants seek better deals outside the program. Secondly, vacancy exposure is a concern due to the lack of data on days on market (DOM), which indicates how long properties typically remain vacant before finding a tenant. This uncertainty makes it difficult to predict vacancy periods accurately, potentially leading to financial strain. Lastly, the absence of data on typical home values and median incomes in the area suggests potential deferred maintenance issues. Landlords should be prepared for properties that may require significant upkeep, especially if the median income does not support high-quality maintenance standards.
However, these risks must be weighed against the 0.0% renter share statistic. A high percentage of renters in an area often correlates with higher demand for Section 8 vouchers. While the exact percentage is not provided here, the implication is that there are very few renters in 95974, which could mean less competition for voucher holders. This scenario might present an opportunity for landlords who can manage the risks effectively, ensuring they have a steady stream of tenants through the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.