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)
To determine if a landlord should invest in ZIP code 96063 for Section 8 properties, follow these steps:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 96063 in metro FY 2026 is $1,360. The first question to ask is whether this amount can cover the debt service on a property. Since the specific property value is not provided (N/A), you must calculate the DSCR based on your investment. If the FMR of $1,360 does not clear the debt service, then the answer is No. Do not proceed further.
Step 2: Market Rent Comparison
If the FMR clears the debt service, compare it with the market rent. The market rent for ZIP 96063 is currently at N/A, which means we do not have a specific figure to compare against the FMR of $1,360. However, if the market rent is above $1,360, landlords will likely face competition from private rentals, making it harder to attract tenants. In this case, the answer is It Depends. If the market rent is at or below $1,360, landlords might find it easier to fill their units with Section 8 tenants, leading to a Yes.
Step 3: Demand Assessment
Assuming the FMR covers debt service and is competitive with market rents, assess the demand. Currently, 100.0% of the residents are renters, indicating strong demand for rental properties. Additionally, the average Days on Market (DOM) is N/A, which suggests that properties are either rented quickly or there is insufficient data to make a determination. If the DOM is low, this signals high demand and a Yes to investing in Section 8 properties. Conversely, if the DOM is high, it could indicate oversupply or other issues affecting demand, resulting in an It Depends.
In summary, for ZIP code 96063, the decision to invest in Section 8 properties hinges on three key factors: the ability of the FMR to cover debt service, the comparison between FMR and market rent, and the assessment of rental demand. With the FMR set at $1,360 and 100.0% of residents being renters, the potential for successful Section 8 investments exists. However, without specific figures for property values and market rent, as well as more detailed DOM data, the final decision remains contingent upon these variables.
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.