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 | $1,440 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $342,336 | 0.52% | F |
| 3BR | $2,400 | $474,896 | 0.51% | F |
| 4BR | $2,890 | $530,721 | 0.54% | F |
| 5BR | $3,352 | $590,942 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 97060, located in Troutdale, Oregon, presents a nuanced scenario for both renters and landlords. The median household income stands at $88,279, which places financial constraints on the ability to pay the market rate rent of $1,751 (ZORI).
To put this into perspective, the Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1,860. This figure represents the maximum amount that Housing Choice Vouchers will cover for rent. However, it's important to note that the actual rent paid by voucher holders is often less due to the requirement that they contribute a portion of their income towards rent.
The affordability gap becomes evident when comparing the median income to the market rate and FMR. A household earning the median income would typically spend around 20% of their income on housing, which amounts to $1,765.60 per month. This is slightly above the market rate but significantly below the FMR. For those relying solely on vouchers, the rent they can afford is likely to be lower still, given the 30% contribution rule.
In Troutdale, where 31.9% of the population are renters, this means that a significant portion of the 21,649 residents face challenges in finding affordable housing. Landlords must navigate this tight market, understanding that the demand for affordable units is high. Competition among landlords who accept vouchers versus those who seek cash-paying tenants is likely to be fierce.
The takeaway for landlords is clear: accepting Housing Choice Vouchers can be a strategic move to secure a steady stream of rental income, even if it means receiving a slightly lower rent compared to market rates. However, landlords should also consider the administrative requirements and potential delays in payments associated with vouchers. Balancing between voucher and cash-paying tenants will depend on individual preferences and business goals, but recognizing the financial realities faced by many renters is crucial for success in this competitive market.
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.