Section 8 Fair Market Rent (FMR) for ZIP 97223 - 2027

Investment Score for ZIP 97223

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	$1,600
1 Bedroom	$1,710
2 Bedrooms	$1,970
3 Bedrooms	$2,670
4 Bedrooms	$3,220
5 Bedrooms	$3,735
6 Bedrooms	$4,183
7 Bedrooms	$4,518
8 Bedrooms	$4,744

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	$1,710	$238,282	0.72%	D
2BR	$1,970	$383,364	0.51%	F
3BR	$2,670	$556,486	0.48%	F
4BR	$3,220	$677,576	0.48%	F
5BR	$3,735	$785,745	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97223 (Tigard, OR) #### Section 8 Voucher Dynamics In ZIP code 97223, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,030 per month. This figure represents 22.8% of the median household income of $106,757, which suggests that it is a reasonable estimate for the rental market. However, the actual rents in the area can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $386,438, which translates to a monthly rent of approximately $1,610 if we assume a standard rent-to-price ratio of 4.2%. This calculation is based on the average mortgage payment for a similar property, including principal, interest, taxes, and insurance. The price-to-FMR ratio of 15.9x indicates that the actual rental prices are much higher than the FMR. For instance, if a two-bedroom apartment were rented out at the Zillow median price, the monthly rent would be around $1,610, which is far below the FMR of $2,030. This discrepancy means that tenants using Section 8 vouchers might face challenges finding properties within their budget. Landlords who accept Section 8 vouchers are limited by the FMR, which is lower than the market rate, potentially making it less attractive for them to participate in the program. #### Affordability & Renter Profile With a population of 50,527 and a renter percentage of 39.2%, there are approximately 19,800 renters in ZIP code 97223. Given the occupancy rate of 97.4%, it is clear that the housing market is tight, with very few vacant units available. The median household income of $106,757 suggests that the majority of residents are middle to upper-middle class, which aligns with the high median home value of $386,438. The high price-to-FMR ratio indicates that the rental market is not affordable for those relying solely on Section 8 vouchers. A tenant with a two-bedroom voucher would have to find a landlord willing to accept a rent of $2,030, which is significantly lower than the market rate. This makes it challenging for low-income families to secure housing in this ZIP code, especially since the actual rents are likely closer to the Zillow median price. #### Investor Angle From an investor perspective, the ZIP code 97223 offers a mixed landscape. The tight market and high occupancy rate suggest strong demand for rental properties, which could lead to good cash flow. However, the actual rents are much higher than the FMR, meaning that landlords accepting Section 8 vouchers would need to operate within a constrained budget. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with renting out a property. Assuming a conservative estimate of 50% of the FMR for expenses (including maintenance, property management, and other costs), a landlord would net about $1,015 per month for a two-bedroom unit. This is still a significant amount, but it is important to note that it is far below the potential market rent of $1,610. Given the high price-to-FMR ratio and the tight market conditions, the investment grade for this ZIP code is moderate. While there is strong demand, the limited upside due to the FMR constraints makes it less appealing for investors focused solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,770, which is still a substantial amount and might be more manageable for landlords compared to larger units. Additionally, the demand for smaller units is likely to be higher in a tight market like Tigard. 2. **Consider Non-Section 8 Tenants**: Due to the high actual rents and the tight market, investors might want to consider targeting non-Section 8 tenants. This would allow them to charge market rates, which are significantly higher than the FMR. For example, a two-bedroom unit could be rented out for around $1,610 per month, providing a better return on investment. 3. **Explore Subsidized Housing Programs**: Investors could explore other subsidized housing programs that offer higher rental assistance. For instance, some state or local programs might provide additional subsidies beyond the federal FMR. This could help bridge the gap between the FMR and the actual market rents. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP code 97223 is to **Skip**. The high price-to-FMR ratio and the tight market make it difficult to achieve a positive cash flow while adhering to the FMR limits. Instead, investors might want to consider areas with a lower price-to-FMR ratio or explore alternative rental assistance programs that offer higher subsidies. If an investor decides to enter this market, they should focus on smaller units and possibly look into non-Section 8 tenants to maximize returns.

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.