Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,620 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
The analysis for ZIP code 97075 in Unknown, Oregon, reveals some limitations due to incomplete data, but we can still draw meaningful conclusions about the potential Section 8 cap rates.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 97075 for fiscal year 2024 is set at $2150 per month. To annualize this figure, we multiply it by 12, resulting in an annual rental income of $25,800. However, without a specific median home value, we cannot directly calculate the gross yield for this scenario. The gross yield would be the annual rental income divided by the property's purchase price or value. Assuming a typical median home value for the area, the gross yield could provide a benchmark for investment potential.
In the absence of market rent data, we cannot compare the Section 8 rent to market rates to determine the cap rate for non-Section 8 rentals. This makes it difficult to assess the relative attractiveness of Section 8 versus market-rate tenancies.
The implied gross yield for a Section 8 property in ZIP 97075 would depend on the median home value. If we were to assume a median home value similar to nearby areas, we might expect a gross yield that reflects the average returns seen in those regions. However, without specific data on median home values and the percentage of renters in the area, any calculation would be speculative.
The Days on Market (DOM) is also not available, which would typically help us understand how quickly properties are being rented out. This information is crucial for assessing the liquidity and demand for rental properties in the area.
Given the lack of precise median home value and market rent data, the most realistic scenario for determining the cap rate involves using the annualized FMR of $25,800. Once you have the median home value, you can calculate the gross yield by dividing the annual rental income by the property's value. This will give you a clearer picture of the investment potential in ZIP 97075 under the Section 8 program.
Landlords and small-portfolio investors should gather additional local data on home values and rental markets to refine these calculations and make informed decisions.
Data Sources: FMR data from HUD (2027).
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.