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 |
The Section 8 housing market in ZIP code 96089, located within the Redding, CA MSA metro area, offers unique opportunities for real estate investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this zip code in fiscal year 2024 is $1490. This figure represents the benchmark for rental rates that landlords can charge under the Section 8 program.
Unfortunately, current market rent data for ZIP 96089 is unavailable, making it challenging to directly compare the HUD FMR against actual market conditions. However, based on historical trends and typical market dynamics, voucher tenants in this area generally cashflow at the FMR rate, especially when considering the lower maintenance costs associated with subsidized housing. Landlords might experience marginal cash flow on standard units, but premium units, which are in better condition or have additional amenities, could provide a more substantial positive cash flow.
The median home value for ZIP 96089 is also not available, preventing a direct calculation of the rent-to-price ratio. This ratio is crucial for understanding the relative affordability of renting versus buying in an area. Without specific data on median home values and days on market (DOM), as well as the percentage of homes that require price cuts, it's difficult to provide insights into the broader rent-versus-buy dynamics. However, given the lack of market rent data, it suggests that the rental market in this area is relatively stable, which benefits long-term investors looking for consistent returns.
In summary, while precise comparisons between market rents and the HUD FMR are limited by data availability, the opportunity for positive cash flow with premium units stands out as the strongest angle for Section 8 investors in ZIP 96089. This focus aligns with a strategy emphasizing stability and steady income over short-term appreciation or speculative gains.
Data Sources: FMR data from HUD (2027).
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.