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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $258,187 | 0.58% | F |
| 2BR | $1,730 | $305,769 | 0.57% | F |
| 3BR | $2,360 | $403,284 | 0.59% | F |
| 4BR | $2,800 | $457,451 | 0.61% | D |
| 5BR | $3,248 | $496,020 | 0.65% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 97233 (Portland, OR) for Section 8 properties, follow this decision tree:
1) Does FMR $1730 (ZIP FY 2024) clear debt service on a $403,483 property?
If the average monthly debt service for a $403,483 property is less than $1730, then the answer is Yes. This means that the Fair Market Rent (FMR) covers the mortgage and other fixed costs associated with the property. For instance, if the monthly debt service is around $1200, the FMR comfortably exceeds it.
If the average monthly debt service for a $403,483 property is more than $1730, then the answer is No. The FMR would not be sufficient to cover the mortgage and other fixed costs. For example, if the monthly debt service is around $2000, the FMR falls short by $270 per month.
2) Is market rent $1,541 (ZORI) above, at, or below FMR?
If the Zillow Observed Rental Index (ZORI) of $1,541 is below the FMR of $1730, then the answer is It Depends. While the FMR is higher, landlords should consider if they can attract tenants willing to pay the higher Section 8 rate, which might be challenging given the lower market rent. The difference of $189 per month could be significant in terms of tenant preference.
If the ZORI of $1,541 is at or above the FMR of $1730, then the answer is Yes. This indicates that the market supports rental rates at or near the FMR, making it easier to find tenants who qualify for Section 8 assistance.
3) Are 53.0% renters + N/A-day DOM enough demand?
The percentage of renters at 53.0% suggests a substantial demand for rental properties. However, without knowing the days on market (DOM), it's hard to gauge how quickly properties are being rented out. If the DOM is low, indicating fast turnover, then the answer is Yes. There is enough demand to support Section 8 investments.
If the DOM is high, suggesting slow turnover, then the answer is No. High DOM implies that there is not enough demand to support Section 8 investments effectively.
In conclusion, investing in ZIP 97233 for Section 8 properties hinges on whether the FMR covers debt service, if market rents align with FMR, and the speed at which rental properties are occupied. Landlords must evaluate these factors based on their specific financial situation and local real estate conditions.
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.