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 | $1,430 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $397,284 | 0.44% | F |
| 3BR | $2,390 | $505,112 | 0.47% | F |
| 4BR | $2,880 | $643,701 | 0.45% | F |
| 5BR | $3,341 | $781,453 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP 97132, located in Newberg, OR, within the Portland-Vancouver-Hillsboro, OR-WA MSA metro, serves as a diversifier in a Section 8 portfolio strategy. With a median income of $96,493, the area is relatively affluent compared to national averages. This ZIP code boasts a high median home value of $533,751, which is indicative of a strong local economy and property market.
The renter share stands at 35.8%, providing a substantial tenant pool for rental properties. Additionally, the area exhibits a low price-cut share of 0.2%, suggesting that rental prices are generally stable and competitive. The median days on market (DOM) is 50 days, indicating that properties are typically rented out quickly, reducing vacancy rates and improving cash flow.
A key factor in evaluating ZIP 97132 for a Section 8 portfolio is the spread between the Fair Market Rent (FMR) and the market rent. The FMR for FY 2024 is set at $1,840, while the market rent is approximately $2,114. This difference allows landlords to maintain positive cash flow while still offering affordable housing options under the Section 8 program.
In conclusion, ZIP 97132 is best suited as a diversifier within a Section 8 portfolio due to its robust local economy, high median home value, and significant renter share. The stability of rental prices and quick turnover times make it a reliable choice for small-portfolio investors seeking a balance between cash flow and long-term appreciation potential.
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.