Location: Tehama County, 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 | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $244,101 | 0.59% | F |
| 3BR | $1,990 | $353,069 | 0.56% | F |
| 4BR | $2,410 | $455,476 | 0.53% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 96007 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,370 for the fiscal year 2024 is notably lower than the market rent, which stands at $1,666 according to ZORI. This discrepancy suggests that landlords might struggle to cover their costs and maintain profitability under the Section 8 program.
Acquisition in ZIP 96007 is relatively affordable. The median home value is $339,163. Additionally, homes spend an average of 36 days on the market (DOM), indicating a brisk pace of sales. The low 0.3% price-cut share further supports the notion that the market is stable and offers good opportunities for purchase without significant discounts.
Tenant demand in ZIP 96007 is strong, with a total population of 24,768 and a renter share of 29.6%. This means that nearly 7,338 residents are actively seeking rental housing, providing a robust pool of potential tenants for Section 8 properties.
Despite strong tenant demand and affordable acquisitions, the rent math in ZIP 96007 does not favor landlords participating in the Section 8 program. The disparity between the FMR and the actual market rent could lead to financial strain, making it less attractive for landlords and small-portfolio investors. However, the stability of home values and the active rental market indicate that there are still opportunities for investment, albeit with careful consideration of the rental income versus property maintenance and operational costs.
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.