Section 8 Fair Market Rent (FMR) for ZIP 97124 - 2027

Investment Score for ZIP 97124

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	$1,770
1 Bedroom	$1,900
2 Bedrooms	$2,180
3 Bedrooms	$2,960
4 Bedrooms	$3,560
5 Bedrooms	$4,130
6 Bedrooms	$4,626
7 Bedrooms	$4,996
8 Bedrooms	$5,246

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
1BR	$1,900	$282,975	0.67%	D
2BR	$2,180	$393,272	0.55%	F
3BR	$2,960	$510,844	0.58%	F
4BR	$3,560	$613,142	0.58%	F
5BR	$4,130	$701,630	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97124 (Hillsboro, OR) #### Section 8 Voucher Dynamics The Federal Market Rent (FMR) for ZIP code 97124 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $2,260 per month. However, the Zillow median price for a two-bedroom home in this area is $396,832, which translates to a price-to-FMR ratio of 14.6x. This indicates that the actual market rent for a two-bedroom unit is significantly higher than the FMR, likely around $32,536 annually ($2,711 monthly). Therefore, voucher holders face substantial constraints as they can only pay up to $2,260 per month, which is far below the market rate. This gap means that landlords who accept Section 8 vouchers may struggle to compete with market rates, potentially leading to fewer units available for voucher holders. #### Affordability & Renter Profile ZIP code 97124 has a population of 54,357, with 53.4% of residents being renters. The occupancy rate is high at 96.8%, indicating a tight rental market. The median household income in the area is $110,067, which suggests that many residents have relatively high incomes. However, the fact that 24.6% of median income goes towards a two-bedroom apartment at FMR implies that even with the FMR, the cost of living is still quite high relative to income levels. Given the high renter percentage and occupancy rate, it is clear that the market is undersupplied, making it challenging for low-income individuals to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 97124 offers mixed opportunities. The FMR for a two-bedroom unit is $2,260, but the actual market rent is estimated to be around $2,711. This discrepancy means that landlords accepting Section 8 vouchers would be operating at a lower rental rate compared to the market. To determine if this is cash-flow positive, we need to consider the typical costs associated with owning and managing rental properties. Assuming average property management costs of 10% and maintenance costs of 5%, the total cost per month would be approximately $271 for a two-bedroom unit at market rent. At FMR, the costs would be $226. Additionally, property taxes and mortgage payments must be considered. If a landlord were to purchase a two-bedroom home at the Zillow median price of $396,832, and assuming a 30-year fixed-rate mortgage at 5%, the monthly payment would be about $2,065. Adding property taxes (estimated at 1.25% of the home value) would add another $397 per month. Thus, the total monthly expenses for a landlord accepting a Section 8 voucher would be around $2,688, leaving a small profit margin of $72 per month. This makes the ZIP code marginally cash-flow positive for investors focusing on Section 8 vouchers. The investment grade for this ZIP code would be moderate due to the tight rental market and the high costs associated with maintaining and financing properties. While there is demand for affordable housing, the limited supply and the disparity between FMR and market rent pose challenges for investors looking to maximize returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high market rent for larger units, investors might want to focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,970, which is still below the market rate but offers a better balance between affordability and profitability. 2. **Consider Multi-Family Properties**: Multi-family properties often have economies of scale that can help offset some of the higher costs. An investor could look into purchasing a multi-unit building where the combined FMR for multiple units might cover the overall expenses more effectively. For example, a four-unit building with two-bedroom units would generate $9,040 in FMR-based rent, which could cover the mortgage, property taxes, and other operational costs. 3. **Seek Government Subsidies**: Investors should explore additional government subsidies and programs that can help bridge the gap between FMR and market rent. Programs like Low-Income Housing Tax Credits (LIHTC) can provide significant financial benefits, making the investment more viable. #### Bottom Line Given the high costs and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 97124 is to **Hold**. The potential for small profits exists, but the risks and challenges are significant. Investors should carefully evaluate their ability to manage properties at lower rental rates and ensure they can leverage any available subsidies to make the investment worthwhile. In summary, while there is a strong demand for affordable housing in Hillsboro, the high market rents and limited supply make it a challenging environment for investors relying solely on Section 8 vouchers. Careful planning and strategic investments are necessary to achieve positive cash flow and maintain a competitive position in the market.

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.