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 | $1,760 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $206,476 | 0.92% | C |
| 2BR | $2,170 | $336,298 | 0.65% | D |
| 3BR | $2,950 | $707,669 | 0.42% | F |
| 4BR | $3,550 | $988,100 | 0.36% | F |
| 5BR | $4,118 | $1,134,016 | 0.36% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 97035, Lake Oswego, OR, does not work favorably for landlords. The Fair Market Rent (FMR) set at $2480 for the fiscal year 2024 is notably higher than the actual market rent indicated by the Zillow Observed Rental Index (ZORI), which stands at $2,018. This suggests that landlords relying on the FMR to set their rental rates might find it challenging to attract tenants willing to pay such prices.
Acquisition in this area is relatively affordable due to the low Days on Market (DOM) rate of 21 days and a minimal 0.3% share of homes that have been price-cut. The median home value is $741,384, making it an attractive location for potential investors looking to acquire properties without facing prolonged listing periods or needing to reduce asking prices significantly.
Tenant demand in ZIP 97035 is strong, given the population size of 25,911 and a substantial 37.0% renter share. These figures indicate a robust pool of potential renters, ensuring a competitive market for landlords. However, the high median home value and the strong demand for rentals suggest that the cost of living is high, and landlords should be prepared to offer amenities and qualities that justify the premium rental rates.
Verdict: While the acquisition process in ZIP 97035 is efficient and the tenant demand is robust, the disparity between the FMR and the actual market rent poses a significant challenge for landlords. To succeed, landlords must align their rental rates with the market, leveraging the high demand and efficient acquisition process to maintain profitability. Despite the initial hurdle with rental pricing, the overall conditions in Lake Oswego present a promising opportunity for savvy investors who can adapt to the local market dynamics.
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.