Location: Redding, CA | Metro: Redding, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 96065 reveals several critical points that could go wrong for a landlord or small-portfolio investor entering into Section 8. Firstly, the tenant turnover rate is likely to be higher when comparing the market rent, which is currently not available, to the Fair Market Rent (FMR) of $1490 for FY 2024. This discrepancy can lead to challenges in maintaining consistent rental income. Secondly, the vacancy exposure is significant due to the lack of Days on Market (DOM) data, indicating potential difficulty in filling vacancies quickly. Lastly, there's an increased risk of deferred maintenance costs. The typical home value in the area is $298,362, while the median income stands at $61,250, suggesting that residents might struggle to afford substantial maintenance expenses, which could fall back on the landlord.
However, these risks must be weighed against the high density of renters in the area, with 15.3% of the population being renters. This high renter share usually translates into a robust demand for housing vouchers, providing a stable source of rental income through the Section 8 program. The presence of many renters also indicates a competitive market where the need for affordable housing is high, potentially leading to quicker lease signings despite the initial vacancy concerns.
In conclusion, despite the uncertainties around market rent and vacancy rates, the high renter density and strong demand for housing subsidies make ZIP 96065 a moderate risk area for a first-time Section 8 landlord. The stability provided by the Section 8 program helps mitigate some of the financial risks associated with higher turnover and deferred maintenance, but careful consideration of the local economic conditions is essential.
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.