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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $281,630 | 0.51% | F |
| 3BR | $1,990 | $364,693 | 0.55% | F |
U.S. Census Bureau data (2024)
16.9% of Lakehead, CA's population rents their homes, indicating a modest demand for rental properties. In ZIP 96051, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1430, which represents the threshold for determining eligibility for the Section 8 program. This figure contrasts with the Census Bureau's reported average market rent of $2,007, suggesting that landlords who can offer units at or below the FMR will likely attract tenants seeking government assistance. The median home value in the area stands at $334,901, reflecting a stable housing market that could support property investments. However, the median income of $69,688 may limit the purchasing power of potential buyers, making rentals an attractive option for many residents. Despite this, the lack of data on days on market (DOM) and the percentage of listings that have had their prices cut indicates a need for further investigation into the local real estate dynamics. Given these numbers, it's clear that while there is a niche for affordable rentals, the overall market leans towards higher-end properties. For Section 8 investors, the opportunity lies in providing quality units at the HUD-set FMR, thereby capitalizing on the federal subsidy program.
A final consideration for Section 8 investors is the administrative aspect. The program requires strict adherence to regulations and regular inspections, but it also provides a steady stream of rental income backed by the government. With the FMR being significantly lower than the market rent, there is a strong incentive for both landlords and tenants to participate in the Section 8 program. Therefore, the verdict for Section 8 investment in ZIP 96051 is positive, especially for those willing to meet the eligibility criteria and manage the administrative requirements.
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.