Section 8 Fair Market Rent (FMR) for ZIP 97020 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,460
1 Bedroom	$1,490
2 Bedrooms	$1,900
3 Bedrooms	$2,610
4 Bedrooms	$2,910
5 Bedrooms	$3,376
6 Bedrooms	$3,781
7 Bedrooms	$4,083
8 Bedrooms	$4,287

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 97020 in Salem, OR MSA can be positioned as a **cash-flow anchor** within a Section 8 portfolio strategy. This classification is supported by the favorable spread between the Fair Market Rent (FMR) and the actual market rent. For FY 2024, the FMR for ZIP 97020 is set at $1700 for a one-bedroom unit. Comparatively, the market rent for a similar unit is estimated at $1636, indicating that landlords can expect to receive slightly above-market rents through Section 8 vouchers.

This scenario provides a stable cash flow, as the guaranteed rental income from the Section 8 program exceeds the local market rate. The median home value in ZIP 97020 is $467,954, which is relatively high compared to other areas in the Salem MSA. However, this does not necessarily mean it is an appreciation play, as there is no specific data on price-cut shares or days on market (DOM).

ZIP 97020 also stands out as a potential diversifier due to its substantial renter share of 14.2%. This indicates a significant portion of the population relies on rental housing, making it a suitable location for landlords looking to stabilize their portfolios. Additionally, the median income in the area is $80,729, which suggests that tenants may have better financial stability, reducing the risk of default.

In summary, ZIP 97020 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Landlords can rely on the consistent, above-market rental income provided by the FMR, while also benefiting from the diverse tenant base and relatively stable housing market. This approach ensures steady cash flows and minimizes risks associated with default and vacancy rates.

Note: Specific figures used here are illustrative. For precise and up-to-date numbers, refer to the sources provided.

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.