Real Estate Investing in Palermo, California (95968)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 95968 (Palermo, CA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Declining values: -1.3% 5-year CAGR — values have moved lower.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Palermo, CA (95968)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 95968 Palermo
The 95968 ZIP in Palermo, CA is a local-operator market. Outside capital chasing a $259K entry has to pair deep knowledge with the discount.
For an experienced owner, 95968 can be a a strong candidate for hunting ground — but the discount at $259K reflects genuine risk that outside investors often underestimate.
In the broader CA picture, 95968 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Resident income in 95968 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategically, 95968 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Palermo:
Property Strategy for 95968
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $210,735 | $1,320 | 4.5% | +0.4% | $105,368 |
| 3BR | $284,186 | $1,850 | 4.7% | +0.9% | $94,729 |
Market Trends
Home Value History (with trend line)
📊 How Does 95968 Compare?
| Metric | 95968 | Palermo | Chico, CA | California |
|---|---|---|---|---|
| Home Value | $258,817 | $258,817 | N/A | $761,003 |
| 5-Year CAGR | N/A | N/A | N/A | 5.7% |
| Avg Rent | $1,188 | $1,188 | N/A | - |
| Cap Rate | 3.6% | 3.6% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 95968 (Palermo, CA). Anonymous, moderated, never written by AI.
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Property managers serving Butte County
Manage rentals here? List your business →Blue Oak Property Management is a full-service residential property management company with deep roots in the Chico community, offering high-end and personalized service. summary from their website
Entwood Property Management is located at 2525 Ceanothus Ave, Chico, CA. summary from their website
IPM Property Management offers multi-family and commercial property management services in Chico and Butte County, CA. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $258,817 |
| Monthly Rent | $1,188 |
| Price-to-Rent | 18.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.5% |
| Cap Rate | 3.6% |
| 5-Year IRR | 2.3% |
📈 Home Appreciation
| 1-Year | +4.5% ▲ |
| 3-Year CAGR | -1.2% ▼ |
| 5-Year CAGR | -1.3% ▼ |
| 10-Year CAGR | +4.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 95968
Population: 1,346
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 95968
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
What is the smart move for investors in Palermo, CA?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Palermo, CA. The numbers - $259K homes against $1,188/mo rents - support that play.
Is CA a landlord-friendly state?
Palermo, CA falls under CA landlord-tenant law, which is tenant-protective. That backdrop makes day-to-day property management reasonable.
Should investors consider Palermo, CA?
Our data puts Palermo, CA at 2.0/5 for investability. Home prices of $259K and rents around $1,188/mo create a solid backdrop for investor activity.
Should investors worry about vacancy in Palermo, CA?
Rental vacancy in Palermo, CA is elevated. Investors should budget normal turnover but not chronic empty units.
Is Palermo, CA good for house hacking?
House hacking works a challenging in Palermo, CA. Rents of $1,188/mo against $259K acquisition make the strategy solid for owner-occupants.
You know 95968 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 95968 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 95968 ranks in Chico, CA
Every ZIP in this metro, ranked. Free.
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