Location: Redding, CA | Metro: Redding, CA MSA
| 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 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 96016 reveals a unique balance between yield potential and market stability. The Fair Market Rent (FMR) for 2024 is set at $1,490. This figure represents the annual rental income potential per unit, assuming full occupancy throughout the year. However, the median home value in this area stands at $308,542, which significantly impacts the initial investment cost and thus the overall yield.
Stability indicators point towards a mixed picture. The area has reported 0.0% of residents identified as renters based on available data, suggesting a predominantly owner-occupied neighborhood. The average days on market (DOM) for properties is not available, which could indicate either a highly competitive market where homes sell quickly, or a less active market where listings may linger longer without clear trends. The median household income in ZIP 96016 is $54,526, providing insight into the economic strength of the area and the ability of residents to sustain rent payments.
Given these factors, ZIP 96016 does not clearly fit into a high-yield/low-stability "flip-style" market category. Instead, it leans more towards a steady cash flow zone, albeit with lower yields due to the high median home value. The low percentage of renters suggests that rental demand might be limited, but the strong median income indicates that tenants who do rent can likely afford higher rents, potentially balancing out the lower yields.
To summarize, the market in ZIP 96016 offers moderate yield potential with a fair degree of stability, making it suitable for investors seeking consistent returns rather than quick flips. The high median home value and median income figures are key drivers of this assessment, indicating a market that is more aligned with long-term investments and steady cash flows.
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.