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 | $1,570 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $450,593 | 0.43% | F |
| 3BR | $2,620 | $487,162 | 0.54% | F |
| 4BR | $3,150 | $594,239 | 0.53% | F |
| 5BR | $3,654 | $733,516 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 97055, which covers parts of Sandy, Oregon, presents a notable gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1910, while the market rent, measured by the Zillow Rent Index (ZORI), stands at $2295. This means landlords can expect to receive $385 less per month than the open-market rate, representing a 16.8% discount.
This discrepancy impacts the investment strategy for landlords and small-portfolio investors significantly. The lower FMR compared to the market rent indicates that voucher tenants pay below the standard rental prices, reducing potential income. In Sandy, where 21.2% of residents are renters and the median home value is $519,658, the decision to accept Section 8 vouchers must be carefully weighed against the financial implications.
Given the median income of $112,323 in Sandy, the disparity between FMR and market rent suggests that landlords might need to consider additional factors such as the stability of voucher payments and the potential for reduced vacancy rates. While the immediate cost of housing voucher tenants is evident, the long-term benefits could include a steady stream of income and fewer turnovers, which can be costly in terms of time and money.
To summarize, landlords in ZIP 97055 should be aware of the $385 monthly difference, or 16.8%, when deciding whether to participate in the Section 8 program. This gap reflects the trade-off between accepting guaranteed government payments and potentially missing out on higher market rents.
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.