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 | $1,520 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $433,272 | 0.4% | F |
| 3BR | $2,380 | $477,287 | 0.5% | F |
| 4BR | $2,860 | $556,501 | 0.51% | F |
| 5BR | $3,318 | $647,370 | 0.51% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 97038, located in Molalla, Oregon, reveals a unique balance between yield and stability that leans towards a steady-cashflow zone rather than a high-yield/low-stability market.
On the yield axis, the Fair Market Rent (FMR) for ZIP 97038 in fiscal year 2024 is set at $1,780. This figure represents the government's estimate of what a tenant can afford, which is slightly below the market rent of $1,831. The median home value in the area is $497,175, indicating a relatively moderate investment cost compared to some other regions. Given these numbers, landlords can expect a modest return on their investment without the extreme risk associated with flipping properties in highly volatile markets.
Moving to the stability axis, the percentage of renters stands at 35.2%, suggesting a significant but not overwhelming portion of the population relies on rental housing. While the number of days on the market (DOM) is not available, the median household income of $89,564 provides insight into the financial health of potential tenants. This income level supports a stable rental environment where tenants are likely to have the means to pay consistent rent over time, reducing the risk of vacancies or non-payment.
To further clarify, let’s break down the key figures:
The slight difference between the FMR and market rent, combined with the reasonable median home value, indicates that while there is room for profit, it is not at the expense of stability. A higher percentage of renters would suggest a more volatile market, but with 35.2% of the population renting, the market remains steady enough to ensure consistent cash flow.
In conclusion, ZIP 97038 presents itself as a steady-cashflow zone due to its moderate yield potential and the stability provided by the income levels and rental demand. Landlords and small-portfolio investors should find this environment conducive to long-term, reliable returns.
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.