Location: Tehama County, CA | Metro: Tehama County, CA
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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $177,013 | 0.58% | F |
| 2BR | $1,330 | $238,540 | 0.56% | F |
| 3BR | $1,840 | $328,236 | 0.56% | F |
| 4BR | $2,220 | $404,658 | 0.55% | F |
| 5BR | $2,575 | $488,318 | 0.53% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase a property in ZIP 96080 (Red Bluff, CA) for Section 8 investment hinges on three primary factors.
1) Does the Fair Market Rent (FMR) of $1,340 cover the debt service on a property priced at $314,620?
Yes: If you can secure a mortgage rate that allows the FMR to exceed your monthly debt service, then this ZIP code is financially viable for Section 8 investment. For instance, with a conventional 30-year fixed-rate mortgage at an interest rate of 5%, the monthly principal and interest payment would be approximately $1,675. The FMR of $1,340 falls short of this amount, indicating that the answer is generally No.
No: Given the FMR does not cover the debt service at a typical mortgage rate, purchasing a property for $314,620 would not be advisable unless you can find a lower-cost property or a significantly lower interest rate.
2) Is the market rent of $1,402 (ZORI) above, at, or below the FMR?
Above: The ZORI of $1,402 is slightly above the FMR of $1,340, suggesting that market conditions are favorable. However, since the FMR does not cover the debt service, this alone is insufficient to recommend buying.
At: Not applicable here, as the ZORI is higher than the FMR.
Below: Not applicable here, as the ZORI is higher than the FMR.
3) Are 36.3% of residents renters and is the Days on Market (DOM) of 22 days sufficient to meet demand?
Yes: With 36.3% of residents being renters and a DOM of 22 days, there is a reasonable level of demand for rental properties. However, the viability of investing in Section 8 is still contingent upon the first question regarding debt service coverage.
No: Not applicable here, as the data indicates sufficient demand.
It Depends: The answer is No because the FMR of $1,340 does not sufficiently cover the debt service on a $314,620 property even though the rental demand appears adequate. Landlords must consider alternative strategies such as targeting lower-priced properties or seeking subsidies to make Section 8 investments in this area feasible.
In summary, while the rental market in Red Bluff, CA (ZIP 96080) shows signs of demand, the financial feasibility for Section 8 investment is limited due to the FMR not covering the debt service on a property valued at $314,620. Adjustments in strategy will be necessary to ensure profitability.
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.