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 | $1,060 |
| 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 | $210,750 | 0.68% | D |
| 3BR | $1,990 | $336,362 | 0.59% | F |
U.S. Census Bureau data (2024)
ZIP code 96028 represents the quaint community of Fall River Mills, California, a place characterized by its small-town charm with a total population of 1,526. The area has a relatively low percentage of renters at 28.4%, suggesting a predominantly owner-occupied market. However, the median income stands at $76,295, which indicates a financially stable populace capable of supporting various housing needs. The median home value in the area is $296,560, reflecting a modest yet comfortable living environment.
The economic landscape for rental properties in Fall River Mills is particularly interesting when considering the Federal Market Rent (FMR) versus the actual market rent. For fiscal year 2024, the FMR is set at $1,490, significantly higher than the reported market rent of $984 according to the Census ACS. This discrepancy presents an opportunity for hands-off voucher operators who can leverage the higher FMR to secure steady rental income. However, it also suggests potential challenges for landlords who must balance the cost of maintaining properties with the lower market rents.
Given these conditions, ZIP 96028 may suit different types of investors depending on their strategy. A hands-off voucher operator would find the area appealing due to the guaranteed income from the higher FMR. On the other hand, a hands-on value-add buyer might look to capitalize on the difference between FMR and market rent by improving property quality to justify higher rents. The decision should consider the local demand for rental properties and the willingness of residents to pay more for better amenities or location.
In conclusion, while the area offers a stable demographic base, the gap between FMR and market rent provides distinct opportunities and considerations for potential investors. Whether to operate hands-off or pursue a value-add strategy will depend on the investor's goals and risk tolerance.
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.