Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $477,578 | 0.49% | F |
| 4BR | $2,800 | $525,632 | 0.53% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 97018 reveals that voucher tenants can achieve positive cash flow at the HUD Fair Market Rent (FMR) rate of $1670 for fiscal year 2024. This is significantly higher than the reported market rent of $1,365, based on the latest Census American Community Survey (ACS) data. The difference indicates that voucher holders have a substantial advantage over regular renters in terms of affordability.
To derive the rent-to-price ratio, we consider the median home value of $480,353 in ZIP 97018. At the FMR rate of $1670, the annual rental income would be approximately $20,040. This translates to a rent-to-price ratio of about 4.2%, which is favorable for investors seeking stable rental income. However, it's important to note that this ratio is based on the FMR and may not reflect actual market rents for non-voucher tenants.
The dynamics between renting and buying properties in this area are influenced by the fact that voucher tenants can afford higher rents than the market average. This suggests that landlords and small-portfolio investors should focus on maintaining properties that meet the Housing Quality Standards (HQS) set by the Section 8 program to maximize their chances of securing voucher tenants. The median days on market (DOM) and the percentage of homes that require price cuts are not applicable here, but they would typically indicate how quickly properties sell and at what discount, which can impact buy-versus-rent decisions.
The strongest angle for investors in ZIP 97018 is likely to be cash flow. Given the higher FMR compared to the market rent, voucher tenants provide a reliable source of income that exceeds the typical market rates, making it an attractive option for those looking to generate steady returns from their investments.
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.