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 | $1,530 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,780 | $526,924 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 96062 is not predominantly a renter-heavy area with deep voucher demand. With only 10.9% of the population renting, it indicates that this area is more homeowner-dominated. The median household income stands at $129,688, which suggests a relatively affluent community.
The market rent for the area is $1,813, representing approximately 14% of the median household income. This percentage is calculated based on the assumption that the median renter's income is proportional to the overall median income. In comparison, the Fair Market Rent (FMR) for FY 2024 is set at $1,570, indicating that the market rent exceeds the FMR by about 15.5%. This discrepancy means that landlords may find themselves charging above the standard voucher rates, potentially limiting their pool of Section 8 tenants.
Given these conditions, landlords in ZIP 96062 can expect a mix of tenants. Some will be able to afford higher rents due to their above-average incomes, while others will seek properties that accept Section 8 vouchers. However, the limited number of renters and the higher market rent compared to the FMR suggest that landlords should prepare for a smaller pool of voucher holders. To attract and retain tenants, landlords might consider offering competitive rental rates close to the FMR or providing additional amenities that justify the higher cost.
In summary, ZIP 96062 is better suited for landlords who can cater to a high-income tenant base or those willing to adapt to the challenges of a less dense rental market with fewer Section 8 voucher users. The expectation is that landlords will have to balance between market rates and the availability of voucher-supported tenants, focusing on areas where the $1,813 market rent aligns more closely with the $1570 FMR.
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.