Location: Tehama County, CA | Metro: Tehama County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
U.S. Census Bureau data (2024)
The analysis of ZIP 96061, located in Tehama County, California, reveals critical insights for potential real-estate investments, particularly focusing on the viability of Section 8 properties.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area, set at $1,360 for fiscal year 2026, is the benchmark figure used by the government to determine rental assistance payments. However, the lack of specific market rent data for comparison makes it challenging to assess if the rent math aligns favorably with the local market conditions. This absence of market rent figures could indicate either a scarcity of rental data or that the local rental market is not well-documented, which might pose risks for investors seeking to understand the true rental landscape.
Moving on to acquisition affordability, the ZIP code presents incomplete data. The median home value is listed as N/A, which means there's no clear indication of how much investment would be required to purchase property in this area. Similarly, the days on market (DOM) and percentage of homes requiring price cuts are also unspecified, leaving significant gaps in understanding the ease or difficulty of acquiring properties at favorable prices. These unknowns suggest that further research into local real estate trends would be necessary before making any investment decisions.
Regarding tenant demand, the data is more conclusive. With a population of 59 and a substantial 84.3% of residents being renters, the demand for rental properties is evident. Despite the low population number, the high renter share indicates a robust interest in renting, which could support the viability of rental properties, especially those that cater to the needs of Section 8 tenants.
In summary, while the tenant demand in ZIP 96061 is strong, the lack of comprehensive market data—specifically the missing market rent figures and incomplete real estate acquisition metrics—poses challenges for a thorough financial assessment. Investors should proceed with caution and conduct extensive due diligence to fill these data gaps before committing to any acquisitions. The potential for success hinges on confirming that the FMR aligns with actual market rents and that the acquisition costs remain within affordable limits given the local real estate conditions.
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.