Section 8 Fair Market Rent (FMR) for ZIP 97202 - 2027

Investment Score for ZIP 97202

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,650
1 Bedroom	$1,770
2 Bedrooms	$2,030
3 Bedrooms	$2,760
4 Bedrooms	$3,320
5 Bedrooms	$3,851
6 Bedrooms	$4,313
7 Bedrooms	$4,658
8 Bedrooms	$4,891

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,770	$404,925	0.44%	F
2BR	$2,030	$501,494	0.4%	F
3BR	$2,760	$649,670	0.42%	F
4BR	$3,320	$795,144	0.42%	F
5BR	$3,851	$892,494	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 97202 (Portland, OR) Introduction: The ZIP code 97202 is located in Multnomah County, Portland, Oregon, and has a population of 43,533 residents. With a median household income of $104,971, it is clear that this area is relatively affluent. However, nearly half of the residents (49.9%) are renters, indicating a significant demand for rental properties. The occupancy rate stands at 95.5%, suggesting a robust housing market with limited vacancy. 1. Section 8 Voucher Dynamics: - Fair Market Rent (FMR) for 2026 in 97202 is set at $2,050 for a two-bedroom unit. This amount represents 23.4% of the median household income, which is a reasonable percentage considering the overall economic status of the area. - Actual rents in the market, as indicated by Zillow, show a median price for a two-bedroom unit at $502,752. This translates into a monthly rent of approximately $4,189, based on a standard mortgage calculation (assuming a 30-year fixed-rate mortgage at 4% interest). - The price-to-FMR ratio of 20.4x highlights a significant gap between the actual rental prices and the FMR. This means that the actual rent is 20.4 times higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing within their budget. For example, a three-bedroom unit with an FMR of $2,790 would be priced around $57,156 annually, whereas the actual market price could be much higher. 2. Affordability & Renter Profile: - Given the high median household income, many residents can afford the high rental costs. However, the 49.9% renter population suggests a diverse demographic where some individuals might struggle to pay market rates. - The tight market conditions, with an occupancy rate of 95.5%, indicate that there is little room for new rental units to enter without increasing competition among tenants. This tightness can lead to higher rental prices and reduced availability of affordable housing options. - The high price-to-FMR ratio implies that the market is oversupplied with expensive rentals, leaving a smaller pool of affordable units for low-income families who rely on Section 8 vouchers. 3. Investor Angle: - From an investor perspective, the ZIP code 97202 presents a mixed scenario. While the median home value is high, the actual rental prices far exceed the FMR, potentially leading to cash flow challenges if relying solely on Section 8 vouchers. - The investment grade for this ZIP code would likely be moderate to low for Section 8-focused investors due to the limited number of units that fall within the FMR range. Investors seeking to maximize returns through market-rate rentals would find better opportunities, but those targeting affordable housing would face significant constraints. 4. Specific Actionable Insights: - **Insight 1:** Investors should focus on acquiring properties that are priced close to or below the FMR levels. For instance, a two-bedroom unit priced at $2,050 or less would be more attractive to Section 8 voucher holders. - **Insight 2:** Given the high price-to-FMR ratio, investors might consider converting high-value homes into multi-unit properties to increase affordability and attract a broader range of tenants, including those with Section 8 vouchers. - **Insight 3:** Investors should also explore opportunities to partner with local government programs or non-profits that provide additional subsidies or incentives for affordable housing projects, thereby mitigating the financial risks associated with lower rental prices. 5. Bottom Line: - **Recommendation:** Skip. The high price-to-FMR ratio and tight market conditions make it difficult for Section 8-focused investors to achieve positive cash flow. Additionally, the limited number of units within the FMR range reduces the potential tenant pool significantly. Investors looking to enter the 97202 market should carefully evaluate the financial viability of their investments and consider alternative strategies or ZIP codes with more favorable conditions for affordable housing. In conclusion, while ZIP code 97202 offers a vibrant and economically strong environment, the current market dynamics present substantial challenges for investors focused on Section 8 vouchers. The high rental prices and limited supply of affordable units suggest that this market may not be the best fit for such investments.

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.