Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,730 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
U.S. Census Bureau data (2024)
The ZIP code 97003 in Beaverton, Oregon, presents an interesting scenario when analyzing rental affordability. The median income here stands at $99,072, which provides a baseline for understanding the financial capabilities of the average household. At the market rate of $1,855 (ZORI), renting in this area is already a significant expense. However, when comparing this to the Fair Market Rent (FMR) of $2,150 set for the zip code for fiscal year 2024, it becomes evident that there is a notable affordability gap.
To put these numbers into perspective, let’s consider a household earning the median income. A typical guideline suggests that no more than 30% of a household’s income should be spent on housing. For a household earning $99,072 annually, this translates to a maximum of $2,476 per month for housing costs. This means that while the ZORI of $1,855 is within the recommended range, the FMR of $2,150 exceeds it, indicating that some households might struggle to afford market rates without assistance.
With 43.9% of the population being renters and a total population of 27,811, competition among landlords is likely to be fierce. Landlords who accept Section 8 vouchers will have access to a pool of tenants who can afford the higher FMR rates due to government subsidies. On the other hand, those relying solely on market-rate cash-paying tenants may face challenges in attracting enough residents willing to pay the ZORI rates.
The takeaway for landlords is clear: accepting Section 8 vouchers can provide a steady stream of tenants who are guaranteed to pay the rent through government support. This strategy mitigates the risk of vacancies and ensures a reliable income source. However, landlords must also be prepared for the administrative requirements and potential limitations associated with participating in the voucher program. In contrast, focusing on cash-paying tenants offers flexibility but requires a careful assessment of the local market to ensure the property remains attractive and competitive.
Data Sources: FMR data from HUD (2027). 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.