Location: Tillamook County, OR | Metro: Tillamook 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 | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $334,374 | 0.43% | F |
| 3BR | $1,980 | $435,906 | 0.45% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 97107 in Bay City, OR, include significant tenant turnover due to the disparity between the market rent of $1,120 and the Federal Market Rent (FMR) of $1,520 for FY 2026. This gap can lead to higher churn rates as tenants might seek more affordable housing options, impacting the stability and income of the property.
Vacancy exposure is another concern, given that the days on market (DOM) data is not available. This lack of information makes it difficult to predict how quickly a vacant unit can be filled, potentially leading to extended periods without rental income. Additionally, the typical home value of $395,249 combined with a median income of $70,417 suggests that there could be a substantial deferred maintenance exposure. Landlords should prepare for higher-than-average repair costs to maintain properties in line with program requirements, which can be financially burdensome if not planned for.
However, these risks are tempered by the high renter share of 19.1%. High renter density typically translates into a robust demand for rental properties, including those participating in the Section 8 program. The concentration of renters increases the likelihood of finding qualified tenants who can benefit from the federal assistance, thereby reducing the overall risk of vacancy and ensuring a steady stream of income.
In conclusion, the risk for a first-time Section 8 landlord in ZIP 97107 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.