Location: Lassen County, CA | Metro: Lassen 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 | $840 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $110,452 | 1.08% | B |
| 3BR | $1,650 | $140,720 | 1.17% | B |
U.S. Census Bureau data (2024)
The ZIP code 96113, located in Herlong, CA, within the Lassen County, CA metro area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,220, while the current market rent stands at $1,110. This creates a positive spread of $110 per unit, ensuring that landlords receive a higher rental income through the Section 8 program compared to the local market rates.
In addition, the median home value in this ZIP code is $123,520, which is relatively low. This indicates that the cost of acquiring properties in this area is also lower, making it easier for landlords to achieve a good return on investment. The positive cash flow generated by the higher Section 8 rental payments can be used to offset any potential maintenance costs or vacancies, thus stabilizing the overall financial performance of the portfolio.
Although the ZIP code does not present significant opportunities for appreciation, given the lack of specific data on price-cut shares and days on market (DOM), it still offers a solid foundation for a diversified investment strategy. With a renter share of 57.1%, there is a strong demand for rental properties in the area, and the median income of $67,083 suggests that tenants are likely to have stable incomes, reducing the risk of default on rental payments.
To summarize, ZIP 96113 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Landlords will benefit from the guaranteed higher rental income provided by the Section 8 program, which exceeds the local market rate by $110 per unit. This makes it an ideal location for securing steady cash flows and enhancing the financial stability of a property portfolio.
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.