Section 8 Fair Market Rent (FMR) for ZIP 97230 - 2027

Investment Score for ZIP 97230

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	$1,420
1 Bedroom	$1,520
2 Bedrooms	$1,750
3 Bedrooms	$2,380
4 Bedrooms	$2,860
5 Bedrooms	$3,318
6 Bedrooms	$3,716
7 Bedrooms	$4,013
8 Bedrooms	$4,214

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
2BR	$1,750	$348,759	0.5%	F
3BR	$2,380	$451,756	0.53%	F
4BR	$2,860	$515,623	0.55%	F
5BR	$3,318	$571,918	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97230 (Portland, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97230 in Portland, Oregon, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1810, which represents 28.7% of the median household income in the area ($75,572). This indicates that the rent is relatively affordable for those earning the median income, but it also highlights a significant disparity between the FMR and actual market rents. The Zillow median price for a two-bedroom home in this ZIP code is $350,359, resulting in a price-to-FMR ratio of 16.1x. This high ratio suggests that actual rental prices in the market are substantially higher than the FMR, creating a challenging environment for tenants using Section 8 vouchers. HUD’s FMR is designed to reflect the average rent and utility costs for standard-quality rental housing. However, the actual rental market in 97230 is much pricier, with landlords likely charging well above the FMR. For instance, if a landlord charges $2000 per month for a two-bedroom unit, a tenant with a Section 8 voucher would only be able to cover $1810, leaving them to pay the remaining $190 out-of-pocket. This can be a significant financial burden for low-income households, especially considering that 39.0% of the population are renters. #### Affordability & Renter Profile ZIP code 97230 has a population of 43,553, with 39.0% of residents being renters. The occupancy rate is 94.4%, indicating a robust demand for rental properties. Given that the median household income is $75,572, the majority of residents are middle-class individuals who may find it difficult to afford market-rate rentals. The high price-to-FMR ratio of 16.1x suggests that the rental market is tight, with many units priced beyond what is considered affordable based on the FMR. The demographic profile of the area includes a mix of young professionals, families, and students. With the median income being $75,572, there is a notable segment of the population that could benefit from affordable housing options. However, the limited supply of units priced at or below the FMR means that competition for these units is fierce, particularly among Section 8 voucher holders. #### Investor Angle From an investor perspective, the ZIP code 97230 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1810, which is significantly lower than the actual market rent. If an investor were to purchase a property at the Zillow median price of $350,359 and rent it out at the FMR, they would face substantial cash flow pressures. The high price-to-FMR ratio of 16.1x implies that the cost of acquisition far exceeds the potential rental income under the FMR guidelines. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operating costs. Assuming a 30-year fixed-rate mortgage at 4.5% interest, the monthly payment on a $350,359 property would be approximately $1765. Adding in estimated property taxes of $1500 annually ($125 monthly), insurance of $1000 annually ($83 monthly), and maintenance and other operating costs of $200 monthly, the total monthly expenses would be around $2173. This is already above the FMR of $1810, indicating that the property would not be cash-flow positive at FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For example, a one-bedroom unit with an FMR of $1580 might be more feasible for cash flow, especially if the purchase price is lower than the Zillow median. 2. **Consider Renovation Projects**: Investors could look into purchasing older properties at a discount and renovating them to meet modern standards while keeping the rent within the FMR range. This approach could potentially yield better returns and align with the needs of Section 8 voucher holders. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The current market conditions make it difficult to achieve positive cash flow when renting at FMR levels, and the high competition for affordable units means that finding willing tenants may be challenging. Investors should look for areas with a more favorable price-to-FMR ratio and less competitive rental markets to ensure better financial outcomes and ease of management.

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.