Location: Tillamook County, OR | Metro: Tillamook 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 | $1,070 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $492,756 | 0.3% | F |
| 3BR | $2,050 | $635,207 | 0.32% | F |
U.S. Census Bureau data (2024)
Cloverdale, OR, located within the ZIP code 97135 and part of the Tillamook County, OR metro area, is best suited as an appreciation play within a Section 8 portfolio strategy. The key to understanding this classification lies in the market dynamics and the potential for property value growth.
The Federal Market Rent (FMR) for the Tillamook County metro area in fiscal year 2026 is set at $1,630, which significantly exceeds the current market rent of $1,194. This spread indicates that properties in Cloverdale can command higher rents through Section 8 vouchers, making them attractive for long-term investment. However, the immediate cash flow benefits are limited due to the lower market rent compared to the FMR.
Despite the lower market rent, Cloverdale offers strong potential for capital appreciation. The median home value stands at $571,474, and the low 0.1% price-cut share suggests that sellers are not frequently discounting their asking prices. Additionally, the N/A-day Days on Market (DOM) indicates that homes in this area sell quickly once listed, reflecting a robust demand for housing. These factors point towards a stable and potentially growing real estate market, where property values are likely to increase over time.
Furthermore, the ZIP code has a 23.7% renter share, which is relatively high but still leaves a significant portion of the population owning homes. This balance supports the idea that Cloverdale is a desirable location for both renters and homeowners, driving up property values. The median income of $93,424 also contributes to the stability and growth potential of the area, as it reflects a financially secure resident base capable of sustaining real estate value increases.
In conclusion, Cloverdale, OR, should be considered an appreciation play in a Section 8 portfolio strategy. Although it does not offer the highest cash flow due to the spread between FMR and market rent, its strong fundamentals and potential for capital appreciation make it a valuable addition to any investment portfolio focused on long-term growth.
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.