Location: Modoc 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 | $1,080 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $224,092 | 0.65% | D |
| 3BR | $2,010 | $351,208 | 0.57% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 96056, McArthur, CA, stands at $61,442. This figure places significant constraints on the ability of a typical household to afford the market rate rent of $1,116, as reported by the Census Bureau's American Community Survey (ACS).
To put this into context, a household earning the median income would spend nearly 22% of their annual income on market rate rent. This expenditure is notably high and could strain the budget of many families.
Comparatively, the Fair Market Rent (FMR) set for the zip code for fiscal year 2024 is $1,210. However, it's important to note that this is the standard used for determining voucher payments under the Section 8 program. In reality, landlords should expect the actual voucher payment to be lower, as it often does not cover the full FMR amount.
Given that only 9.7% of the 1,584 residents are renters, competition among landlords is likely to be relatively low. This means that landlords who can offer affordable housing options might attract a larger share of the available rental market.
The affordability gap between the median income and both the market rate and FMR highlights the financial challenges faced by renters in McArthur, CA. Landlords must carefully consider their pricing strategy to balance profitability with the ability to attract tenants.
For landlords, the decision between accepting Section 8 vouchers or focusing on cash-paying tenants should be informed by the local economic conditions. While cash-paying tenants might offer higher immediate returns, the limited number of potential renters suggests that accepting vouchers could be a strategic move to ensure occupancy and long-term stability.
In conclusion, landlords in ZIP 96056 must weigh the benefits of higher rents from cash-paying tenants against the broader affordability issues and the potential for increased occupancy and tenant retention by participating in the Section 8 program. The choice should reflect an understanding of the local economic landscape and the needs of the community.
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.