Location: Siskiyou County, CA | Metro: Siskiyou County, CA
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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $198,206 | 0.79% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 96039 does not work in favor of landlords when considering the Federal Market Rent (FMR) versus the actual market rent. The FMR for the area in fiscal year 2026 is set at $1,090, which is significantly higher than the $811 average market rent reported by the Census Bureau's American Community Survey (ACS). This discrepancy means that landlords may struggle to find tenants willing to pay the FMR, especially since the market rent is considerably lower.
Acquisition in ZIP 96039 is relatively affordable, with a median home value of $150,505. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts indicates that the local real estate market might be less liquid compared to other areas. Landlords should exercise caution and conduct thorough due diligence before making acquisitions, focusing on properties that can generate positive cash flow based on the current market rent.
Tenant demand in ZIP 96039 is moderate. With a total population of 583 and 36.2% of residents being renters, the pool of potential tenants is limited. Given the small number of renters, landlords must ensure their properties are well-positioned to attract and retain tenants, possibly through competitive pricing or additional amenities that appeal to the local rental market.
Verdict: While the acquisition cost is low, the rent math does not work in favor of landlords due to the significant gap between the FMR and market rent. Tenant demand is present but limited, suggesting that landlords must carefully manage property costs and consider pricing strategies that align with market realities. ZIP 96039 presents an opportunity for those willing to navigate its challenges, but it requires a keen understanding of the local market dynamics to succeed.
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.