Section 8 Fair Market Rent (FMR) for ZIP 97116 - 2027

Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA

Investment Score for ZIP 97116

Monthly Rent (2BR)

$1,730

Median Price (2BR)

$396,236

1% Rule

0.44%

Annual Yield

5.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,730	$396,236	0.44%	F
3BR	$2,360	$495,664	0.48%	F
4BR	$2,800	$587,845	0.48%	F
5BR	$3,248	$684,253	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

29,800

Median Household Income

$92,613

Housing Units

10,229

Renter Percentage

33.6%

Occupancy Rate

96.7%

Renter Occupied

3,322

The ZIP code 97116, located in Forest Grove, Oregon, is a suburban area characterized by a mix of residential neighborhoods and commercial spaces. It offers a blend of affordability and accessibility, making it attractive for both tenants and investors.

Fair Market Rent (FMR): The FMR for a two-bedroom apartment in ZIP 97116 for fiscal year 2024 is set at $1,660, indicating the government's benchmark for rental prices in the area.
Zillow Observed Rental Index (ZORI): The market rent, as observed by Zillow, stands at $1,701 for a typical two-bedroom unit, slightly above the FMR and reflecting the actual rental market conditions.
Median Home Value: The median home value in 97116 is $526,965, suggesting that while it is a relatively affordable market compared to larger metropolitan areas, it still holds significant equity potential for homeowners and investors alike.
Renter Share: With 33.6% of households being renters, there is a notable demand for rental properties in the area, providing a stable tenant base for landlords.
Days on Market (DOM): Properties typically remain on the market for about 40 days before receiving an offer, which is a moderate period that can be advantageous for thorough due diligence and negotiation.
Median Income: The median household income in 97116 is $92,613, providing insight into the financial stability and purchasing power of the local residents.

In summary, the rental market in ZIP 97116 is robust with a slight premium over government-set FMRs, and the median home values indicate a balance between affordability and growth potential. The moderate DOM suggests a healthy pace of sales, allowing for strategic property management. Given these factors, landlords and small-portfolio investors can expect steady returns from rental properties, with the potential for capital appreciation in line with the median home values and the economic stability indicated by the median income levels.

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.