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 | $1,540 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $356,293 | 0.53% | F |
| 3BR | $2,580 | $589,346 | 0.44% | F |
| 4BR | $3,100 | $741,238 | 0.42% | F |
| 5BR | $3,596 | $850,597 | 0.42% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP 97086, located in Happy Valley, OR, are significant and must be carefully considered. Tenant turnover is a critical issue, with the market rent at $1,864 being notably lower than the Fair Market Rent (FMR) of $2,030 for FY 2024. This disparity can lead to frequent changes in occupancy, which is undesirable for landlords seeking stable tenancy. Additionally, the vacancy exposure is substantial, given that the days on market (DOM) average around 35 days. During this period, properties remain unoccupied and generate no rental income, impacting cash flow negatively.
The deferred maintenance exposure is another concern. With a typical home value of $682,078 and a median income of $102,359, residents may struggle to afford necessary repairs and upkeep, potentially leaving landlords to cover these costs. The financial burden of maintaining a property in good condition can be considerable, especially when tenants have limited disposable income.
However, these risks are tempered by the high renter density in the area. The 37.3% renter share indicates a robust demand for rental properties, which often translates into higher interest in Section 8 vouchers. This high demand can help mitigate some of the risks associated with tenant turnover and vacancy rates, as there is likely to be a steady stream of interested applicants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 97086 is moderate.
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.