Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 97117 presents an interesting scenario for both renters and landlords. With a median household income of $121,818, it might seem that residents could easily afford the market rate rent of $1,857. However, when considering the typical financial burdens households face, including taxes, savings, and other expenses, the actual ability to pay such high rents becomes less certain.
The Federal Market Rent (FMR) for ZIP 97117 in fiscal year 2024 is set at $1,740. This is the standard amount that housing vouchers will cover. Comparing the FMR to the market rate of $1,857 reveals an affordability gap of $117 per month for voucher recipients. This means that even with a voucher, tenants would need to contribute additional funds to meet the market rate, which can be challenging given the overall cost of living in this area.
With only 13.4% of the 982 residents being renters, competition among landlords is likely to be high. The limited number of renters suggests that there are fewer potential tenants to fill vacancies, making it crucial for landlords to understand the financial capabilities of their prospective tenants. Offering units at or below the FMR can attract voucher holders who might otherwise struggle to find affordable housing options in this competitive market.
The takeaway for landlords is clear: while renting at market rates of $1,857 can be lucrative, it also limits the pool of potential tenants. Voucher holders represent a reliable source of rental income, albeit at a lower rate of $1,740. Landlords should weigh the benefits of higher cash-paying rents against the stability and ease of finding tenants that come with accepting vouchers. In ZIP 97117, where the number of renters is relatively low, offering units at or near the FMR can be a strategic move to ensure steady occupancy and avoid prolonged vacancy periods.
Data Sources: FMR data from HUD (2027). 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.