Location: Salem, 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 | $1,790 |
| 3 Bedrooms | $2,480 |
| 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 | $2,480 | $471,550 | 0.53% | F |
| 4BR | $2,800 | $532,161 | 0.53% | F |
U.S. Census Bureau data (2024)
Salem, OR MSA's ZIP 97032 presents a compelling opportunity for Section 8 landlords and small-portfolio investors, fitting best into the role of a cash-flow anchor. The Federal Market Rent (FMR) for FY 2024 is set at $1680, which is notably higher than the current market rent of $1392. This spread ensures that landlords can rely on a consistent and above-average rental income, providing stability and predictability to their investment portfolios.
The median home value in ZIP 97032 stands at $489,751, indicating a relatively stable housing market. Given the discrepancy between FMR and market rent, landlords can expect a steady cash flow without the need for frequent rent adjustments or property upgrades to attract tenants. This makes the area particularly attractive for those looking to minimize risk and maximize predictable returns.
While ZIP 97032 does offer some elements of an appreciation play and diversification, these factors are secondary to its potential as a cash-flow anchor. The price-cut share and days on market (DOM) are listed as N/A, suggesting that there isn't enough data to confidently predict short-term appreciation trends. However, the 26.2% renter share and median income of $101,250 provide a solid tenant base with sufficient financial means to cover the higher Section 8 rents, contributing to the stability of the cash flow.
In conclusion, ZIP 97032 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed higher-than-market rental rates coupled with a stable housing market and financially secure tenant population make it an ideal choice for investors seeking reliable and consistent income from their properties.
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.