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 | $1,220 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $223,441 | 0.72% | D |
| 3BR | $2,230 | $316,249 | 0.71% | D |
| 4BR | $2,690 | $402,471 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 96019, which includes Shasta Lake, California, presents an interesting scenario when viewed from the renter’s perspective. The median household income here is $67,446. Against this backdrop, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), stands at $1,417. This places a significant financial burden on residents, especially considering that over 31.8% of the 10,350-person population are renters.
To put these numbers into perspective, let’s consider the Federal Market Rent (FMR) for the area, which is set at $1,490 for fiscal year 2024. This figure represents the maximum amount that housing authorities will pay for rental assistance under the Section 8 program. Comparing the ZORI to the FMR, we see that the market rate is slightly below the voucher payment standard, indicating that landlords could potentially receive higher rent payments through vouchers than what they might charge in the open market.
The affordability gap between the median income and the market rate rent highlights a challenge for many households. A monthly rent of $1,417 would consume a substantial portion of a household’s budget, particularly if we assume a typical household size where multiple people share the cost. This financial strain means that competition among renters for affordable housing is likely to be fierce, driving some to seek out Section 8 vouchers to manage their living expenses.
For landlords, this situation suggests that adopting a strategy to accept Section 8 vouchers could be beneficial. By doing so, they can attract tenants who might otherwise struggle to find housing within their budget. Moreover, the guaranteed payment structure of vouchers, which is pegged closer to the FMR, offers a reliable income stream that is less susceptible to market fluctuations. In contrast, relying solely on cash-paying tenants might expose landlords to the risk of vacancy during periods when market rates exceed what local renters can afford.
In summary, landlords in ZIP 96019 should consider the advantages of accepting Section 8 vouchers. Not only does it provide a stable source of income, but it also helps them tap into a segment of the rental market that might be underserved by the current market rate rents. This approach aligns well with the economic realities faced by many renters in the area and can help ensure consistent occupancy and income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.