Section 8 Fair Market Rent (FMR) for ZIP 97007 - 2027

Investment Score for ZIP 97007

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	$1,630
1 Bedroom	$1,750
2 Bedrooms	$2,010
3 Bedrooms	$2,730
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

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	$2,010	$339,063	0.59%	F
3BR	$2,730	$531,598	0.51%	F
4BR	$3,280	$675,815	0.49%	F
5BR	$3,805	$773,186	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97007 (Beaverton, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97007 in Beaverton, Oregon, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1720 - 1BR: $1830 - 2BR: $2100 - 3BR: $2860 - 4BR: $3400 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these figures to actual rental prices in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR home in this ZIP code is $344,122, which translates into a high price-to-FMR ratio of 13.7x. This means that the average market rent for a 2BR unit is likely much higher than the FMR of $2100. Consequently, voucher holders face severe constraints in finding affordable housing within their budget. #### Affordability & Renter Profile ZIP code 97007 has a population of 47,895, with 25.0% of residents being renters. The occupancy rate is 97.5%, indicating a very tight rental market. Given the median household income of $123,533, it is clear that the majority of residents can afford market-rate rents. However, the 25.0% of renters who rely on lower-income sources may struggle to find suitable housing. The 2BR FMR represents only 20.4% of the median income, which suggests that even though the FMR is relatively low compared to the overall income levels, it still poses a challenge for those who are dependent on rental assistance programs. The tight market conditions mean that landlords have less incentive to accept Section 8 vouchers, as they can easily find tenants willing to pay market rates. This situation exacerbates the difficulties faced by voucher holders in securing housing. #### Investor Angle From an investor perspective, the ZIP code 97007 presents a mixed picture when considering cash flow and investment grade based on FMRs. The FMR for a 2BR unit is $2100, while the Zillow median price indicates a much higher market rent. If we assume that the market rent for a 2BR unit is around $2,100 per month (which is conservative given the high price-to-FMR ratio), then the cash flow potential at FMR would be negative unless the property is significantly below market value. To illustrate, let's consider a typical 2BR property with a market rent of $2,100. At FMR, the landlord would receive only $2100, which is far below the likely market rent. Additionally, the high price-to-FMR ratio of 13.7x suggests that the property values are well above what HUD considers fair market rent. Therefore, the investment grade for properties in this ZIP code that aim to attract Section 8 voucher holders is relatively low due to the limited number of units that can be rented out at FMR without incurring significant losses. #### Specific Actionable Insights 1. **Focus on Below-Market Properties**: Investors should focus on acquiring properties that are priced significantly below the market value. For example, a 2BR property with a purchase price closer to $210,000 might be more feasible for Section 8 tenants. This would ensure that the rent collected at FMR levels ($2100) is sufficient to cover operating costs and provide a modest profit margin. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like 0BR or 1BR might offer better opportunities for cash flow. These units typically command lower rents, making them more aligned with FMR guidelines. For instance, a 1BR unit with an FMR of $1830 could potentially be rented out at a slightly higher rate if the market allows, thus providing some cushion for the landlord. 3. **Engage with Local Housing Authorities**: To increase the likelihood of renting out properties to Section 8 voucher holders, investors should actively engage with local housing authorities. They can seek partnerships or incentives that might help offset the financial burden of accepting vouchers. Additionally, understanding the local demand and supply dynamics can help tailor marketing efforts specifically towards voucher holders. #### Bottom Line Given the tight rental market and the high price-to-FMR ratio, the recommendation for Section 8-focused investors in ZIP code 97007 is to **Skip** this market. The significant gap between FMR and market rents makes it challenging to achieve positive cash flow without substantial subsidies or below-market acquisitions, which are rare in such a competitive market. Investors looking to enter this ZIP code should carefully evaluate the financial feasibility and consider alternative markets where the FMR is more closely aligned with market rents.

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.