Location: Redding, CA | Metro: Redding, 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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $267,537 | 0.58% | F |
| 3BR | $2,160 | $358,703 | 0.6% | D |
| 4BR | $2,610 | $508,896 | 0.51% | F |
| 5BR | $3,028 | $636,820 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 96002 in Redding, California, reveals several key points regarding the viability of Section 8 properties in this area.
Firstly, the rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,410 for fiscal year 2024 is notably lower than the market rent, which stands at $1,704 (ZORI). This means that landlords will be receiving less rent through Section 8 vouchers compared to what they could earn in the open market, resulting in a potential loss of income.
Secondly, the acquisition cost of homes is relatively high, with a median home value of $376,007. However, the days on market (DOM) of 11 days indicate that homes are selling quickly once listed, suggesting a competitive but active market. Additionally, the low price-cut share of 0.3% implies that homes are generally selling close to their asking price, making it a stable environment for acquiring properties.
Thirdly, there is a significant tenant demand. With a population of 33,783 and a renter share of 39.8%, there are over 13,400 individuals who might be seeking rental housing. This represents a substantial pool of potential tenants, particularly those eligible for Section 8 assistance.
In conclusion, while the rent math does not favor landlords due to the discrepancy between the FMR and ZORI, the quick sale times and stable pricing suggest that property acquisition remains feasible. The robust tenant demand, especially among renters, indicates that there is a strong base of potential Section 8 participants. Landlords should weigh the lower rental income against the steady stream of tenants and the ease of property turnover before deciding to invest in ZIP 96002.
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.