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 | $1,810 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $276,099 | 0.7% | D |
| 2BR | $2,230 | $440,190 | 0.51% | F |
| 3BR | $3,030 | $531,193 | 0.57% | F |
| 4BR | $3,640 | $620,366 | 0.59% | F |
| 5BR | $4,222 | $670,889 | 0.63% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 97217, located in Portland, OR, within the Portland-Vancouver-Hillsboro, OR-WA MSA metro area, does not align favorably for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $2360, which significantly exceeds the market rent of $1,623 as indicated by ZORI. This disparity suggests that tenants receiving Section 8 vouchers might struggle to cover the higher rents landlords could charge, potentially leading to fewer lease agreements.
Regarding acquisition affordability, the median home value in ZIP 97217 is $503,310. With a Days on Market (DOM) of only 8 days and a mere 0.2% of homes needing a price cut, the market appears highly competitive and swift. However, the high median home value means that acquiring properties will be costly, making it less attractive for small-portfolio investors looking to enter the market with limited capital.
Tenant demand in ZIP 97217 is substantial. With a total population of 35,169 and 43.5% of residents being renters, there is a considerable pool of potential tenants. This high renter share indicates a strong interest in rental housing, providing a solid foundation for landlords who can offer competitive pricing.
Verdict: While there is significant tenant demand in ZIP 97217, the rent math does not work in favor of landlords due to the discrepancy between the FMR and market rent. Acquisition costs are also high, making property purchase less affordable for smaller investors. Landlords should consider offering competitive rents to attract Section 8 tenants and balance their investment strategy accordingly.
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.