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 | $1,590 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $446,843 | 0.44% | F |
| 3BR | $2,660 | $725,644 | 0.37% | F |
| 4BR | $3,200 | $1,032,898 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 97231 in Portland, OR, presents an interesting scenario when analyzed from the perspective of renters. The median household income in this area is $137,527, which is notably high. However, the market rate for rent stands at $1,898 according to the Census Bureau's American Community Survey (ACS). This suggests that while households have a strong earning potential, they still face significant housing costs.
To further understand the financial landscape, consider the Fair Market Rent (FMR) set at $1,960 for zip code 97231 in fiscal year 2024. This figure is slightly higher than the market rate, indicating that the government aims to cover the average cost of rental housing in the area. For renters relying on Housing Choice Vouchers, the standard voucher payment aligns closely with the FMR, offering a competitive subsidy that can help bridge the affordability gap.
The affordability gap in 97231 is significant given the high rent-to-income ratio. With only 11.7% of the population being renters and a total population of 4,308, the pool of potential tenants is relatively small. This means landlords face stiff competition for the limited number of renters who can afford the high rents in the area.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: accepting vouchers can be a viable option to attract and retain tenants in a highly competitive market. While vouchers may not offer the highest immediate return on investment, they ensure steady rental income and reduce vacancy rates. Moreover, vouchers are pegged to the FMR, which is only marginally above the current market rate, making it a practical choice for landlords in ZIP 97231.
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.