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 | $1,130 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $378,387 | 0.6% | F |
U.S. Census Bureau data (2024)
The ZIP code 96087 stands out due to its unique demographic and economic characteristics. With only 899 residents, it has an extremely low rental rate of 0.0%, indicating that virtually all housing units are owner-occupied. The median income in this area is notably high at $110,375, reflecting a prosperous community. Additionally, the median home value is impressively high at $333,690, suggesting a strong local real estate market.
From a Section 8 voucher perspective, the Fair Market Rent (FMR) for ZIP 96087 in fiscal year 2024 is set at $2210. However, there is no available market rent data to compare against, which might imply limited rental housing options or a lack of comprehensive rental market analysis in this specific ZIP code. Given the low rental rate, landlords should be aware that Section 8 vouchers may not be widely utilized here, and thus, the demand for subsidized rental properties could be minimal.
The data signature for ZIP 96087 reads as stable. The high median income and median home value indicate a consistent financial health within the community, while the absence of rental activity suggests a well-established homeownership culture that is unlikely to shift rapidly. For small-portfolio investors and landlords, this ZIP code presents a scenario where traditional rental investments may not yield expected returns, and alternative investment strategies focused on homeownership assistance or luxury property development could be more viable.
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.