Section 8 Fair Market Rent (FMR) for ZIP 97006 - 2027

Investment Score for ZIP 97006

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,740
1 Bedroom	$1,860
2 Bedrooms	$2,140
3 Bedrooms	$2,910
4 Bedrooms	$3,500
5 Bedrooms	$4,060
6 Bedrooms	$4,547
7 Bedrooms	$4,911
8 Bedrooms	$5,157

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,140	$310,740	0.69%	D
3BR	$2,910	$490,669	0.59%	F
4BR	$3,500	$629,576	0.56%	F
5BR	$4,060	$763,713	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97006 (Beaverton, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97006 in 2026 is set at $2230 for a two-bedroom unit. This represents 25.5% of the median household income of $104,790 in the area. However, the actual rental market is significantly higher, with Zillow reporting a median price of $321,610 for a two-bedroom home. This translates into a price-to-FMR ratio of 12.0x, indicating that the actual rent prices are far above what is considered fair market rent by HUD standards. For voucher holders, this means that they face significant constraints in finding affordable housing. The FMR is intended to cover the cost of renting a modest apartment in the local market, but with the actual rent prices being so high, many voucher holders will struggle to find units that accept their vouchers and are within the FMR limits. For example, a two-bedroom unit priced at $321,610 would be well beyond the $2230 FMR limit, making it unaffordable for those relying solely on Section 8 assistance. #### Affordability & Renter Profile ZIP code 97006 has a population of 46,463, with 56.1% of residents being renters. This indicates a strong rental market, where a majority of the population relies on rented properties rather than owning homes. The occupancy rate stands at 96.2%, suggesting that the market is relatively tight, with most available units being occupied. Given the high median household income of $104,790, it is likely that the typical renter in this area has a decent financial standing. However, the significant gap between the FMR and the actual rental prices means that affordability remains a challenge for low-income renters. The high price-to-FMR ratio of 12.0x implies that the rental market is not only competitive but also expensive, making it difficult for those with limited resources to secure housing. #### Investor Angle From an investor perspective, the ZIP code 97006 presents a mixed picture. While the rental market is robust, with a high percentage of renters and a tight occupancy rate, the actual rent prices far exceed the FMR. This means that properties rented at FMR levels would likely not generate sufficient cash flow to cover expenses and provide a profit margin. To illustrate, if an investor purchases a two-bedroom property for $321,610, the monthly mortgage payment based on a 30-year fixed-rate loan at 4.5% interest would be approximately $1550. Adding property taxes, insurance, maintenance, and other expenses, the total monthly cost could easily exceed $2230, the FMR limit for a two-bedroom unit. Therefore, it would be challenging to achieve positive cash flow while adhering to FMR guidelines. In terms of investment grade, the ZIP code 97006 would likely be rated as moderate to high risk due to the high costs associated with purchasing and maintaining properties in the area. Investors should carefully consider the potential for vacancy and the difficulty in attracting tenants who can afford the high rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as studios or one-bedroom apartments. These units have lower FMRs ($1820 for 0BR and $1950 for 1BR), which could make it easier to manage expenses and still achieve positive cash flow. Additionally, these units might be more attractive to single individuals or couples who are looking for affordable housing options. 2. **Consider Areas with Lower Price-to-FMR Ratios**: If the goal is to invest in Section 8-focused properties, it might be prudent to look for areas within Washington County that have lower price-to-FMR ratios. This would allow for better alignment between the actual rental prices and the FMR limits, potentially leading to more stable and profitable investments. 3. **Develop Relationships with Property Managers**: Since the actual rental prices are so high, developing relationships with property managers who are willing to accept Section 8 vouchers can be crucial. This could involve offering incentives or working out agreements that ensure a steady stream of tenants despite the challenges posed by the high price-to-FMR ratio. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 97006 is to **skip** this market. The high price-to-FMR ratio makes it extremely difficult to achieve positive cash flow while adhering to the FMR limits. Additionally, the tight rental market and high actual rent prices suggest that finding properties that accept Section 8 vouchers and are within budget will be challenging. Investors should instead consider areas with lower price-to-FMR ratios or focus on smaller units where the FMR is more aligned with actual rental prices.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.