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 | $1,020 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $562,947 | 0.25% | F |
| 3BR | $1,940 | $696,206 | 0.28% | F |
| 4BR | $2,250 | $868,183 | 0.26% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 97149, which encompasses Neskowin, Oregon, might have several concerns regarding the viability of investing in the area through the Section 8 program. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,540 (for the metro area in fiscal year 2026) cover the mortgage on a $600,472 home?
The Fair Market Rent (FMR) of $1,540 does not directly correlate with covering the mortgage on a $600,472 home. The FMR represents the average rental cost for a two-bedroom unit in the area, while the mortgage payment would depend on factors such as interest rates, loan terms, and down payments. To accurately assess whether the FMR can cover the mortgage, an investor must calculate the monthly mortgage payment based on current interest rates and compare it to the FMR. However, the data does not provide specific interest rates or loan terms for the area, so this calculation cannot be done here. It's crucial for investors to consult with a financial advisor to determine if the FMR aligns with their investment goals.
Objection 2: Is there enough renter demand at 31.8%?
The 31.8% figure indicates that just over a third of the housing units in Neskowin are occupied by renters. This percentage suggests that while there is a significant number of renters, the demand may not be as high as in densely populated urban areas. However, the demand for rental properties can vary widely depending on the type of property and its location. Investors should focus on properties that cater to the needs of potential tenants, such as proximity to amenities, schools, and employment centers. Additionally, the local real estate market trends and occupancy rates will play a key role in determining the actual demand. The data does not provide detailed insights into the local rental market trends, but investors can gather more information through local real estate agents or online rental platforms.
Objection 3: Will vouchers keep pace with N/A market rents?
The data does not specify whether the Section 8 voucher amounts are keeping up with the market rents in Neskowin. The lack of specific information means that investors cannot definitively know if the voucher payments will cover the cost of renting out their properties. Typically, Section 8 voucher programs aim to ensure that rents remain affordable for low-income families, but the actual amounts paid can vary based on local market conditions and federal guidelines. To mitigate this risk, investors should regularly check the latest updates on Section 8 voucher amounts and compare them with the prevailing market rents in the area. Engaging with local housing authorities and reviewing past trends can also provide valuable insights into how well the voucher system has kept pace with market rents historically.
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.