Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
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 | $1,420 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $451,440 | 0.52% | F |
| 4BR | $2,800 | $495,062 | 0.57% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP code 97127 for Section 8 properties begins with assessing financial viability based on the Fair Market Rent (FMR) and the property's cost.
Step 1: The FMR for ZIP 97127 in fiscal year 2024 is set at $1670. This figure must be sufficient to cover the debt service on a property valued at $460,380. To determine if this is possible, calculate the monthly mortgage payment and other fixed costs. If the total debt service is less than $1670, then the answer is yes; otherwise, it is no.
Step 2: Next, compare the market rent of $1181 (as per Census ACS data) against the FMR. If the market rent is above the FMR, it suggests that there is a premium for rental properties, which could indicate strong demand. If it is equal to or below the FMR, then the market is either aligned with or undervalued compared to the FMR. In such cases, it depends on how much lower the market rent is and whether you can still make a profit at the FMR level.
Step 3: Evaluate the demand by considering the percentage of renters and the days on market (DOM). In ZIP 97127, 13.5% of residents are renters, and the DOM is listed as N/A, which means there isn't sufficient data to determine the average time a rental unit remains vacant before being rented. Given the limited DOM data, focus on the 13.5% of renters. This percentage indicates moderate demand. However, without knowing the DOM, it is challenging to assess the speed at which units will be filled. Therefore, the answer is it depends on the local market conditions and vacancy rates.
If all three criteria are met—FMR clears debt service, market rent is competitive or higher, and there is enough demand—the investment in ZIP 97127 for Section 8 properties would be advisable. If any of these criteria are not met, reconsider the investment or seek additional information to mitigate risks.
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.