Location: Redding, CA | Metro: Redding, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
The ZIP code 96040 represents a unique area, primarily known for its low density and specific characteristics. With a total population of 57, it stands out as an exceptionally small neighborhood. Notably, there are no reported renters within this population, indicating a community composed entirely of homeowners. The median household income and median home values are not available, suggesting a lack of comprehensive data for these metrics.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 96040 in fiscal year 2024 is set at $1490. This figure serves as a benchmark for housing affordability under federal programs such as Section 8. However, without specific market rent data, it's challenging to compare how the FMR aligns with local rental trends. The absence of this information could be due to the limited number of rental properties in the area or insufficient data collection.
Given the unique composition of ZIP 96040, where all residents are homeowners, it presents a particular challenge for hands-off voucher operators. The scarcity of rental units means that finding suitable properties for Section 8 tenants would be difficult, if not nearly impossible. On the other hand, for hands-on value-add buyers who might consider converting some of the existing homes into rental properties, the opportunity could be more promising. However, they must contend with the limited population size and the potential challenges of attracting renters to a predominantly owner-occupied community.
In conclusion, ZIP 96040 is not a typical market for passive Section 8 investment strategies due to its small population and lack of renters. It is better suited for active investors willing to engage deeply with the local real estate dynamics and potentially transform some of the existing properties into rental units. Such investors should be prepared for the complexities associated with operating in a niche market where data is sparse and opportunities are limited.
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.