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 | $1,240 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $282,143 | 0.6% | D |
| 3BR | $2,360 | $370,255 | 0.64% | D |
| 4BR | $2,850 | $488,911 | 0.58% | F |
| 5BR | $3,306 | $608,772 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate market in Cottonwood, California (ZIP 96022), is currently characterized by a median home value of $367,196. This figure, coupled with the observation that only 0.2% of listings have been reduced, suggests that sellers maintain significant pricing power. The minimal reduction in listing prices indicates that homes are selling at or near their asking prices, which is a strong indicator of seller dominance. Additionally, the 30-day median days on market (DOM) reflects an efficient market where homes are quickly finding buyers, further reinforcing the robust demand for properties in the area.
On the rental side, the Fair Market Rent (FMR) for ZIP 96022 as of fiscal year 2024 is set at $1,440, while the current market rent is slightly higher at $1,450. This minor gap between the FMR and the actual market rent signals that rental prices are stable and closely aligned with government estimates. For landlords and small-portfolio investors, this stability suggests a consistent income stream without the need for frequent price adjustments.
Long-term investment in Cottonwood's real estate market appears promising given the setup implied by the data. The slight underperformance of the median home value relative to the rent prices could indicate potential for appreciation. However, the minimal reduction in listing prices and the quick DOM suggest that any appreciation will likely be gradual rather than rapid. Investors should anticipate steady growth in property values, driven by sustained demand and limited supply pressures.
The market dynamics in Cottonwood support a conservative appreciation thesis. With a median home value that has not seen significant reductions and a rental market that is in line with government standards, there is a solid foundation for long-term investment. The setup points to a stable environment where properties will likely retain their value and see modest increases over time, making it a reliable choice for those looking to hold onto assets for extended periods.
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.