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 | $1,440 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,540 | $354,143 | 0.43% | F |
| 2BR | $1,770 | $428,615 | 0.41% | F |
| 3BR | $2,400 | $498,843 | 0.48% | F |
| 4BR | $2,890 | $580,309 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 97218, located in Portland, Oregon, within Multnomah County and part of the Portland-Vancouver-Hillsboro, OR-WA MSA, reveals a challenging environment due to the disparity between HUD Fair Market Rent (FMR) and market rents. The HUD FMR for ZIP 97218 is set at $1,950 for fiscal year 2024, whereas the Zillow Observed Rent Index (ZORI) indicates that the average market rent stands at $2,051. This means that voucher tenants will only marginally cashflow at the FMR rate, necessitating that landlords either accept lower profit margins or seek out premium units where the rent can be higher.
To further understand the investment landscape, the median home value in ZIP 97218 is $475,420. Using this figure, we can calculate the rent-to-price ratio, which is approximately 0.43%. This low ratio suggests that rental properties are relatively expensive compared to their potential rental income, making it less attractive purely from a rental yield perspective. However, the dynamics of the local housing market also play a role in investment decisions. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's evident that the buy-versus-rent scenario does not significantly impact the rental market, as sales activity is not particularly high or competitive.
The strongest investor angle in ZIP 97218 is likely to be stability. While cashflow is marginal and appreciation potential is limited by the high median home values, the consistent demand for rental properties and the relatively low turnover in sales indicate a stable market. Investors can rely on steady rental income, even if it means operating on thinner margins, and benefit from the long-term stability of the area without the risk of significant price fluctuations.
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.