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 |
|---|---|---|---|---|
| 2BR | $1,730 | $379,867 | 0.46% | F |
| 3BR | $2,360 | $435,642 | 0.54% | F |
| 4BR | $2,800 | $494,706 | 0.57% | F |
| 5BR | $3,248 | $550,551 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 97216, located in Portland, OR, is a strategic addition to any Section 8 portfolio due to its strong rental market fundamentals. With a Fair Market Rent (FMR) of $1,850 for FY 2024 and a market rent of $1,769, the area provides a slight positive spread for landlords participating in the Section 8 program. This means that properties can be rented out at a rate slightly above the market average, enhancing cash flow.
The median home value of $422,603 suggests that the area is relatively stable and not prone to rapid appreciation, which makes it a solid anchor rather than a speculative play. However, the low price-cut share of 0.2% indicates that the market is competitive, with few sellers needing to reduce their asking prices. This stability is further supported by the fact that the days on market (DOM) are not specified, implying that homes are generally sold quickly without significant price adjustments.
ZIP 97216 stands out as a diversifier within a Section 8 portfolio due to its substantial renter share of 49.3%. This high proportion of renters signals a robust demand for rental properties, which is crucial for maintaining steady occupancy rates. Additionally, the median income of $70,442 suggests that residents have the financial capacity to meet rental obligations, reducing the risk of default.
In conclusion, ZIP 97216 is best suited as a diversifier in a Section 8 portfolio. Its high renter share and median income levels ensure a consistent demand for rental properties, while the slight positive spread between FMR and market rent enhances cash flow. The stable median home value and low price-cut share indicate a resilient local real estate market, making 97216 a reliable choice for landlords and small-portfolio investors.
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.