Location: Clatsop 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 | $1,090 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $420,045 | 0.35% | F |
| 3BR | $2,050 | $487,700 | 0.42% | F |
| 4BR | $2,470 | $560,911 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 97121 in Oregon reveals a market that offers a balance between yield and stability, making it neither purely a high-yield/low-stability flip-style market nor a strictly steady-cashflow zone. The median family income in this area stands at $59,470, which supports a rental market where 29.4% of residents are renters. This percentage indicates a moderate level of demand for rental properties.
The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $1,580, while the market rent is estimated at $1,517. These figures suggest a slight premium for federally subsidized rentals, which could be advantageous for landlords participating in the Section 8 program. However, the home value in this ZIP code is notably higher at $481,922, indicating that the real estate market is relatively robust and potentially less volatile compared to areas with lower home values.
The absence of data on days on market (DOM) makes it difficult to assess the speed at which properties sell, but the combination of moderate rental rates and higher home values implies a stable environment. Landlords can expect reasonable returns without the risks associated with highly volatile markets.
To summarize, ZIP 97121 presents an opportunity for steady cash flow with decent yields. The slight difference between FMR and market rent suggests that there is room for profit, especially for those who can manage their properties efficiently. The moderate renter percentage and high home values indicate a market that is less prone to sudden fluctuations, thus offering a degree of stability to investors.
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.