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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $255,710 | 0.59% | F |
| 2BR | $1,730 | $388,801 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 97205, located in Portland, OR, within the Portland-Vancouver-Hillsboro, OR-WA MSA, is well-suited as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that support stable and predictable cash flows.
In FY 2024, the Fair Market Rent (FMR) for ZIP 97205 is set at $1,840, which exceeds the market rent of $1,764. This spread indicates that Section 8 tenants can cover the majority of the rent, providing a reliable source of income for landlords. Additionally, the median home value in 97205 is $499,726, suggesting that the area is relatively affordable for the region, making it easier for landlords to acquire properties.
The data from Redfin further supports this assessment. In March 2026, the median sale price of a home in 97205 was $800K, up 34.5% year-over-year, indicating strong appreciation potential. However, homes in this ZIP code sell in just 19 days on average, compared to 113 days last year, which suggests a robust and active market. This quick turnover can be advantageous for landlords looking to optimize their property investments.
Given these factors, ZIP 97205 serves as a solid foundation for a Section 8 portfolio, ensuring consistent cash flow while also offering the possibility of capital appreciation. The combination of high FMR relative to market rents and a vibrant real estate market makes this ZIP code an ideal choice for landlords and small-portfolio investors seeking stability and 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.