Section 8 Fair Market Rent (FMR) for ZIP 97206 - 2027

Investment Score for ZIP 97206

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	$1,490
1 Bedroom	$1,590
2 Bedrooms	$1,830
3 Bedrooms	$2,480
4 Bedrooms	$2,990
5 Bedrooms	$3,468
6 Bedrooms	$3,884
7 Bedrooms	$4,195
8 Bedrooms	$4,405

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	$1,590	$342,447	0.46%	F
2BR	$1,830	$416,245	0.44%	F
3BR	$2,480	$481,151	0.52%	F
4BR	$2,990	$571,828	0.52%	F
5BR	$3,468	$636,859	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97206 (Portland, OR) #### Section 8 Voucher Dynamics In ZIP code 97206, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1870 per month for 2026. This amount represents 22.8% of the median household income of $98,548, which indicates that it is a relatively affordable rent for the average resident. However, the actual rental market price for a two-bedroom unit is significantly higher, with the Zillow median price standing at $417,321. This translates to a price-to-FMR ratio of 18.6x, suggesting that actual market rents are far above the FMR. For Section 8 voucher holders, the disparity between FMR and market rents poses significant constraints. The maximum allowable rent under the voucher program is capped at the FMR, meaning that voucher holders would struggle to find suitable housing in this area without substantial assistance. Given the high market rents, many landlords might be hesitant to participate in the Section 8 program due to the lower rent they can charge compared to the market rate. #### Affordability & Renter Profile ZIP code 97206 has a population of 49,890, with 35.2% of residents being renters. This indicates a moderate demand for rental properties, but the occupancy rate of 96.0% suggests that the market is quite tight, with few vacant units available. The median household income of $98,548 is relatively high, which means that while some residents can afford the higher market rents, others, particularly those relying on Section 8 vouchers, will face challenges in finding affordable housing. The high price-to-FMR ratio of 18.6x implies that the market is highly competitive and not oversupplied. Renters in this area are likely to be a mix of middle-income individuals and families who can afford the market rates, as well as low-income households who rely on government assistance like Section 8 vouchers. However, the latter group will have limited options due to the gap between FMR and market rents. #### Investor Angle From an investor perspective, the ZIP code 97206 presents a challenging environment for cash flow if the goal is to operate strictly within the FMR guidelines. With the Zillow median price for a two-bedroom property at $417,321, the monthly mortgage payment alone would exceed the FMR of $1870. Assuming a typical mortgage rate of 4.5%, the monthly payment for a $417,321 property would be approximately $2085, even before factoring in maintenance, insurance, and other costs. Given these figures, operating at the FMR would result in negative cash flow, making it difficult for investors to turn a profit unless they can leverage other forms of subsidies or manage costs exceptionally well. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the high market rents and the limited number of units that can be rented out at the FMR. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring one-bedroom or studio apartments, where the FMR is lower ($1630 and $1530 respectively). These units are more likely to align with the market conditions and provide better cash flow opportunities within the Section 8 framework. 2. **Seek Additional Subsidies**: Given the high market rents, investors might consider seeking additional subsidies or partnerships with local government agencies to bridge the gap between FMR and market rates. This could include state-level housing assistance programs or tax incentives designed to encourage affordable housing development. 3. **Develop Long-Term Strategies**: For investors looking to enter the Section 8 market in 97206, a long-term strategy might involve purchasing properties at below-market prices or in areas with less competition. Additionally, focusing on properties that require minimal renovation can help reduce upfront costs and improve profitability. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 97206 is to **Skip**. The high market rents and the tight occupancy rate make it difficult to find properties that can be rented out at the FMR and still generate positive cash flow. While there is a significant need for affordable housing, the current market conditions pose too many financial risks for investors aiming to operate solely within the Section 8 program parameters.

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.