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 | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $269,654 | 0.56% | F |
| 2BR | $1,730 | $380,874 | 0.45% | F |
| 3BR | $2,360 | $440,483 | 0.54% | F |
| 4BR | $2,810 | $497,000 | 0.57% | F |
| 5BR | $3,260 | $551,487 | 0.59% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 97220 in Portland, Oregon reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,820. In comparison, the Zillow Observed Rent Index (ZORI) for the same region stands at $1,636. This indicates that voucher tenants will generally cashflow at the FMR rate, meaning landlords can expect positive cash flow when renting to tenants with vouchers.
To further understand the investment potential, consider the median home value in ZIP 97220, which is $428,139. Using this figure, we can calculate the rent-to-price ratio. With an average monthly rent of $1,636, the annual rent would be approximately $19,632, leading to a rent-to-price ratio of roughly 4.6%. This ratio suggests that rental income is relatively low compared to property values, but it still provides a stable cash flow for investors.
The dynamics between buying and renting in the area are also worth noting. The median days on market (DOM) for homes is 20 days, indicating a brisk sales pace. Additionally, only 0.3% of listings have had their prices cut, suggesting that the housing market remains strong and resilient. These factors contribute to a stable rental market, where demand for affordable housing is likely to remain steady.
Investors should also be aware of the potential for appreciation. While the primary focus for Section 8 investments is often cash flow, the median home value in the area provides a solid foundation for long-term appreciation. As the local economy continues to grow, driven by the Portland-Vancouver-Hillsboro, OR-WA MSA, property values are expected to rise, offering a dual benefit of both rental income and capital gains.
The strongest investor angle in ZIP 97220 is cash flow. Given the favorable difference between the HUD FMR and the market rent, landlords can expect consistent positive cash flow from voucher tenants. This makes the area particularly attractive for those looking to generate reliable rental income without the need for premium units.
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.