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 | $1,900 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,030 | $257,427 | 0.79% | D |
| 2BR | $2,340 | $375,292 | 0.62% | D |
| 3BR | $3,180 | $560,975 | 0.57% | F |
| 4BR | $3,820 | $708,289 | 0.54% | F |
| 5BR | $4,431 | $822,938 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 97140, Sherwood, Oregon, presents a nuanced picture for landlords and small-portfolio investors. With a median home value of $632,884, the market signals stability and potential growth. The fact that only 0.2% of listings have been reduced in price indicates strong seller pricing power. This reduction rate is exceptionally low, suggesting that homes are selling at or near their asking prices, a trend likely to continue over the next 12-24 months.
The 14-day median days on market (DOM) further reinforces this point. A DOM of just 14 days is indicative of a robust demand for properties in Sherwood, where homes are moving quickly. This quick turnover suggests that buyers are willing to act swiftly, often before the listing has a chance to sit on the market for an extended period. Such conditions imply that landlords can maintain or even slightly increase rents without fear of vacancy.
On the rental side, the Fair Market Rent (FMR) for ZIP 97140 in fiscal year 2024 is set at $2,500. However, the actual Zillow Observed Rental Index (ZORI) currently stands at $2,577. This slight premium above the FMR indicates that the rental market is slightly outperforming government projections. Landlords should be cautious about increasing rents beyond this observed market level, as it could lead to higher vacancy rates if tenants find comparable properties at lower prices.
For long-hold investors, the setup in Sherwood, OR, implies a realistic appreciation thesis. Given the strong seller pricing power and quick DOM, there is a foundation for steady appreciation. However, the modest gap between the FMR and ZORI suggests that rapid appreciation might not occur. Instead, the data points to a scenario where property values will likely rise gradually, reflecting the stable economic environment and consistent demand.
In summary, the median home value, low percentage of reduced listings, and short DOM all suggest a favorable environment for maintaining and potentially enhancing rental income. Long-term investors can expect moderate appreciation, aligning with the overall positive but measured trends in the area. These factors collectively provide a clear signal of the market's health and potential for both immediate and long-term gains.
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.