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 | $1,200 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,190 | $406,135 | 0.54% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 96096 hinges on its financial metrics and rental market dynamics. With a Fair Market Rent (FMR) of $1,490 for fiscal year 2024, compared to the local market rent of $1,200, there is a notable premium for federally subsidized tenants. This indicates a potential high-yield market for landlords participating in the Section 8 program. The median home value in the area stands at $385,863, which is relatively high and suggests that the property market is robust.
However, the stability axis paints a different picture. Only 12.7% of residents are renters, which is a low percentage and points towards a less stable rental market. The average income in the area is $64,444, which is moderate but does not necessarily correlate with higher rental demand or stability. Given the lack of data on days on market (DOM), it's challenging to assess how quickly properties can be rented out, adding another layer of uncertainty to the stability metric.
Based on these figures, ZIP 96096 leans towards being a high-yield/low-stability market. The high FMR versus the market rent implies that landlords could potentially earn more per unit if they secure Section 8 tenants. However, the low percentage of renters and the moderate income levels suggest that the overall rental market is not very robust, making it riskier for long-term investments. For small-portfolio investors or landlords looking for short-term flips, this environment might offer opportunities due to the potential for higher rents under Section 8. Yet, for those seeking steady cash flow, this ZIP code presents challenges given the limited rental population and uncertain demand.
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.