Location: Tillamook County, OR | Metro: Clatsop County, OR
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 | $1,060 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $747,257 | 0.2% | F |
| 3BR | $2,040 | $1,000,010 | 0.2% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 97102 is anchored by the discrepancy between the Fair Market Rent (FMR) of $1,610 and the lack of reported market rent figures. This gap is significant given the median home value of $920,243 and the high per-capita income of $89,649. The FMR is set at $1,610 for the fiscal year 2026, which is notably lower than the average household income in the area, estimated at $156,560.
The FMR represents approximately 57.4% of the average household income, indicating a substantial disparity. However, the median income for ZIP 97102 is listed as unavailable, suggesting that the income distribution might be highly skewed, with a notable percentage of higher-income households (34.6% of households earn over $200,000 annually).
This scenario presents a challenge for landlords and small-portfolio investors. With only 9.7% of residents being renters, the demand for rental properties is relatively low. Moreover, the FMR is significantly below the average household income, which means that voucher tenants may not cover the full market rent. This shortfall could reduce overall yields for landlords who rely on rental income to cover property costs.
Despite the low FMR, the high average household income and median home value suggest that there is a strong local economy capable of supporting higher rents. Landlords should consider the broader economic context and the potential for higher-paying tenants outside the Section 8 program to maximize their investment returns.
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.