Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,850 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,430 for ZIP 97068 (West Linn, OR) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $773,611. The answer lies in understanding the typical mortgage costs relative to rental income. A home priced at $773,611 would likely have a monthly mortgage payment ranging between $2,500 and $3,500, depending on interest rates and down payments. Given the FMR, it's clear that the rent alone may not fully cover the mortgage without additional income sources such as a co-signer or rental of other properties.
The investor could also be concerned about the level of renter demand in the area, which stands at 17.9% according to recent data. This figure indicates that nearly one in every five homes in West Linn are rented, suggesting a modest but present demand. However, the low vacancy rate of 0.6% signals that those who are seeking rentals are finding them quickly, which bodes well for maintaining steady occupancy rates and avoiding prolonged periods of vacancy.
A final objection might be whether voucher usage will keep pace with market rents of $2,234. Unfortunately, the data provided does not specify the trends in voucher usage within ZIP 97068. However, given the median household income in this area is relatively high at $145,877, it suggests that many residents may not rely heavily on vouchers. Thus, while vouchers might play a role in some rental transactions, they are unlikely to be the primary source of rental income in this ZIP code.
In summary, while the FMR of $2,430 may not fully cover the mortgage on a $773,611 home, the strong occupancy rate and low vacancy suggest a healthy rental market. The high median household income implies a robust local economy, potentially reducing reliance on voucher programs. For a comprehensive analysis, further investigation into specific mortgage terms and detailed voucher usage trends would be advisable.
Data Sources: FMR data from HUD (2027). 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.