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 |
|---|---|---|---|---|
| 2BR | $1,730 | $333,282 | 0.52% | F |
| 3BR | $2,360 | $419,636 | 0.56% | F |
| 4BR | $2,800 | $506,400 | 0.55% | F |
| 5BR | $3,248 | $590,678 | 0.55% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 97236 (Portland, OR) for Section 8 investments, follow this decision tree:
1) Does FMR $1,870 (for ZIP 97236 in FY 2024) clear debt service on a $435,563 property?
No: The Fair Market Rent (FMR) of $1,870 is insufficient to cover the debt service on a property valued at $435,563. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the property value, these expenses would likely exceed the FMR amount.
Yes: This scenario is unlikely based on the given FMR and property value. However, if your debt service is low due to a high down payment, favorable interest rates, or other factors, then the answer could be yes. In such a case, proceed to the next question.
2) Is market rent ($1,553 ZORI) above, at, or below FMR?
Below FMR: The Zillow Rent Index (ZORI) of $1,553 is below the FMR of $1,870. This indicates that the market rent is lower than what the government will pay for a Section 8 voucher holder. You can still accept Section 8 tenants, but you might need to adjust your expectations for rental income.
At or Above FMR: If the market rent were at or above the FMR, it would indicate a more balanced market where landlords can expect to receive the full FMR amount for their Section 8 units. Since the ZORI is below the FMR, this branch does not apply to ZIP 97236.
3) Are 41.6% renters + 24-day DOM enough demand?
It depends: With 41.6% of residents being renters and an average Days on Market (DOM) of 24 days, there is moderate demand for rental properties in ZIP 97236. A DOM of 24 days suggests that properties are rented relatively quickly, which is positive. However, the percentage of renters is not exceptionally high, indicating that while demand exists, it may not be robust enough to ensure a steady stream of tenants.
In conclusion, for a property priced at $435,563, the FMR of $1,870 is unlikely to clear debt service. Additionally, the market rent is below the FMR, meaning you may not achieve the full subsidy amount. While the rental market shows moderate activity, the overall financial viability for Section 8 investment is questionable without significant cost reductions or subsidies covering more than just the rent. Consider these factors carefully before making a purchase decision.
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.