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 | $1,490 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $452,475 | 0.4% | F |
| 3BR | $2,480 | $586,268 | 0.42% | F |
| 4BR | $2,990 | $690,743 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 97227, located in Portland, Oregon, is part of the larger Portland-Vancouver-Hillsboro, OR-WA MSA metro area. To analyze its position within this metro, we can compare several key metrics: Fair Market Rent (FMR), market rent, home value, and renter share.
The FMR for ZIP 97227 in fiscal year 2024 is set at $2,170. This figure is notably higher than the typical market rent of $1,578 for the same ZIP code. The disparity between FMR and market rent suggests that there is a significant opportunity for landlords who can secure Section 8 tenants willing to pay up to the FMR. This dynamic often indicates a value pocket where market rents are lower but government subsidies can offset the difference.
The median home value in ZIP 97227 stands at $561,982. While this is a substantial amount, it is important to note that it is generally reflective of the overall housing costs in the Portland-Vancouver-Hillsboro MSA, which tends to have higher-than-average home values compared to other regions in the United States. However, when juxtaposed against the high renter share of 73.9%, it becomes evident that a large portion of residents are renters rather than homeowners. This high percentage of renters is indicative of a neighborhood that might be particularly attractive to small-portfolio investors looking to capitalize on rental demand.
A ZIP code with a high renter share and relatively lower home values compared to the broader metro area can signal a sweet spot for Section 8 investments. In ZIP 97227, the combination of a high FMR, lower market rent, and a significant renter population suggests that it is well-positioned as a value pocket for Section 8 properties. Landlords and investors can leverage the higher subsidy levels to attract tenants while still maintaining competitive rental rates in the local market.
To summarize, ZIP 97227 is a value pocket within the Portland-Vancouver-Hillsboro MSA, offering opportunities for landlords and investors through its favorable FMR and market rent dynamics, alongside a strong renter share. This makes it an attractive location for those interested in Section 8 real estate, especially when considering the broader context of the metro's housing market.
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.