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 | $1,710 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,430 |
| 5 Bedrooms | $3,979 |
| 6 Bedrooms | $4,456 |
| 7 Bedrooms | $4,812 |
| 8 Bedrooms | $5,053 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,830 | $223,499 | 0.82% | C |
| 2BR | $2,100 | $393,488 | 0.53% | F |
| 3BR | $2,850 | $607,784 | 0.47% | F |
| 4BR | $3,430 | $786,594 | 0.44% | F |
| 5BR | $3,979 | $930,888 | 0.43% | F |
U.S. Census Bureau data (2024)
Portland’s 97229 zip code covers the Cedar Mill and Bethany areas, characterized by expansive suburban subdivisions, highly rated public schools, and a family-oriented atmosphere. The neighborhood is primarily residential with a growing commercial hub near the Cedar Hills Crossing. Local qualitative research highlights Washington County as a major economic driver, home to significant employers like Nike World Headquarters just a few miles away, which provides a stable employment base for potential tenants.
From a valuation standpoint, this area commands a premium. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,150, while current market rents (Zillow ZORI) sit at $2,044. This creates a tight gap of only $106 in favor of the voucher. Median home values are substantial at $743,078, with median 2-bedroom sale prices around $399,635. Inventory moves relatively slowly here, with a median of 85 days on market. Given the $1,760 HUD SAFMR benchmark versus the $2,150 FMR, it is essential to use the correct FMR for 2026 projections.
The tenant profile in 97229 is distinct, with a renter share of only 30.2% and a median household income of $161,570. This high income suggests that any Section 8 tenants will likely be working families seeking quality school districts rather than low-income households. Local resources consistently praise the Beaverton School District serving this area, which is a strong draw for families. While public transit is available via TriMet, the neighborhood layout is car-dependent, which may influence tenant accessibility.
The Section 8 verdict for 97229 leans toward long-term stability and appreciation rather than immediate cashflow. With the 2BR voucher exceeding market rent by a slim margin, the income is secure, but the high acquisition cost ($743,078 median value) keeps yields modest. The strongest angle here is asset preservation and low vacancy risk, as the high median income and top-tier schools create a competitive environment where voucher holders are likely to be reliable, long-term occupants in a desirable 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.