Section 8 Fair Market Rent (FMR) for ZIP 97045 - 2027

Investment Score for ZIP 97045

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,640
2 Bedrooms	$1,890
3 Bedrooms	$2,570
4 Bedrooms	$3,090
5 Bedrooms	$3,584
6 Bedrooms	$4,014
7 Bedrooms	$4,335
8 Bedrooms	$4,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,640	$376,738	0.44%	F
2BR	$1,890	$447,329	0.42%	F
3BR	$2,570	$566,366	0.45%	F
4BR	$3,090	$677,004	0.46%	F
5BR	$3,584	$767,811	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97045 (Oregon City, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97045, as per the 2026 data, is set at $1940 for a two-bedroom unit. This represents 22.5% of the median household income of $103,573 in Oregon City. The FMR is designed to reflect the average rent paid by low-income families for decent, safe, and sanitary housing. However, it is important to note that the actual rents in the area can be significantly higher. For instance, the Zillow median price for a two-bedroom unit is $443,912, which translates into a monthly rental cost of approximately $1850 if we assume a 5% annual return on investment. This is already close to the FMR but does not account for additional costs such as property taxes, insurance, and maintenance. Given the high price-to-FMR ratio of 19.1x, it is evident that actual rents far exceed the FMR, creating a significant constraint for voucher holders. They may struggle to find units that accept their vouchers due to the disparity between FMR and market rents. #### Affordability & Renter Profile In ZIP code 97045, 25.2% of the population are renters, indicating a moderate demand for rental properties. With a high occupancy rate of 95.7%, the rental market appears to be quite tight, suggesting limited availability of units and potentially higher competition among renters. Given the median household income of $103,573, the majority of residents are likely employed and have stable incomes. However, those relying solely on Section 8 vouchers will find it challenging to secure a two-bedroom unit at the FMR of $1940, especially considering the high median home value and the associated rental costs. This tight market could lead to a situation where voucher holders are forced to look for smaller units or move outside the area to find affordable housing. #### Investor Angle From an investor's perspective, the ZIP code 97045 presents both opportunities and challenges. While the Zillow median price for a two-bedroom unit is $443,912, which implies a potential rental income of around $1850 per month, the actual rental income must be adjusted for additional expenses. Assuming a conservative estimate of $1500 for these additional costs, the net rental income would be approximately $350 per month. This leaves a very slim margin for profit, making it difficult to achieve positive cash flow at the FMR levels. Given the high price-to-FMR ratio of 19.1x, the investment grade for this ZIP code is relatively low for Section 8-focused investors. The primary challenge lies in the fact that the FMR is substantially lower than what is typically charged in the market, and landlords may be hesitant to accept vouchers due to the potential financial strain. Therefore, while there is a steady demand for rental properties, the returns for investors who rely solely on Section 8 vouchers are likely to be minimal. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units, such as one-bedroom or studio apartments, which have lower FMRs. For example, the FMR for a one-bedroom unit is $1690, which is still a fraction of the Zillow median price. This could provide a better opportunity for positive cash flow compared to larger units. 2. **Consider Alternative Funding Sources**: To offset the low returns from Section 8 vouchers, investors could explore alternative funding sources such as Low-Income Housing Tax Credits (LIHTC) or other government incentives. These programs can help reduce the overall cost of ownership and improve the financial viability of rental investments in this area. 3. **Evaluate Rental Market Trends**: Investors should closely monitor rental market trends in ZIP code 97045. If the occupancy rate remains consistently high and the number of renters increases, it could signal a growing demand for affordable housing. This could make properties that accept Section 8 vouchers more attractive to landlords over time, potentially improving the investment landscape. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 97045 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Additionally, the limited number of units that accept vouchers and the potential financial strain on landlords suggest that this area may not be ideal for investments that rely heavily on Section 8 vouchers. Instead, investors might want to look at areas with a lower price-to-FMR ratio or consider alternative investment strategies that do not depend solely on Section 8 vouchers.

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.