Location: Salem, 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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $428,294 | 0.4% | F |
| 3BR | $2,360 | $562,121 | 0.42% | F |
| 4BR | $2,800 | $705,776 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 97101 in Amity, Oregon, are significant. Tenant turnover is a critical issue, with the market rent at $1,606 being notably lower than the Fair Market Rent (FMR) of $1,770 for FY 2024. This discrepancy suggests that tenants might find it challenging to afford higher rents outside the Section 8 program, leading to frequent turnover and associated costs. Vacancy exposure is another concern, as the Days on Market (DOM) is listed as N/A, indicating an unreliable measure of how quickly properties can be rented out. This uncertainty can translate into extended periods of vacancy, which can significantly impact cash flow. Furthermore, the deferred maintenance exposure is substantial, given the typical home value of $577,566 and the median income of $99,837. Landlords must be prepared to invest in property upkeep, as residents' financial capabilities may not cover these expenses.
However, these risks are tempered by the high concentration of renters in the area, with 26.5% of the population renting their homes. High renter density often correlates with increased demand for housing vouchers, which can provide a steady stream of tenants who are less likely to default on rent payments. The presence of a large number of voucher holders in the area can mitigate the risk of vacancy and ensure a consistent source of rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.