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 | $1,760 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,880 | $322,656 | 0.58% | F |
| 2BR | $2,160 | $482,104 | 0.45% | F |
| 3BR | $2,930 | $679,583 | 0.43% | F |
| 4BR | $3,530 | $883,255 | 0.4% | F |
| 5BR | $4,095 | $940,579 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether investing in ZIP 97239, located in Portland, OR, is financially viable given several key factors. Here are some common concerns and the data that addresses them.
Objection 1: Will Fair Market Rent (FMR) of $2200 cover the mortgage on a $606,937 home?
The FMR of $2200 for ZIP 97239 in fiscal year 2024 must be compared against the expected mortgage costs. A $606,937 home, financed at today's average interest rates, could have a monthly mortgage payment around $2500 to $3000. This means that relying solely on FMR to cover mortgage payments would likely fall short, leaving a shortfall of approximately $300 to $800 per month. However, it's important to note that property values and interest rates can fluctuate, so an updated analysis should be conducted using current rates and any recent changes in property value trends.
Objection 2: Is there enough renter demand at 55.5%?
The rental vacancy rate of 55.5% in ZIP 97239 suggests a significant amount of available rental space relative to the number of renters. This high percentage indicates that there is ample supply of rental units, which could make it challenging to find tenants willing to pay the FMR. Despite this, it's worth considering that rental vacancy rates can vary widely based on seasonality and local economic conditions. A thorough review of historical vacancy rates and future projections would provide a clearer picture of the potential for securing tenants at the desired rent levels.
Objection 3: Will vouchers keep pace with $1,813 market rents?
The average market rent of $1,813 in ZIP 97239 is notably lower than the FMR of $2200. While this discrepancy might suggest that vouchers will not cover the full cost of market rents, it's crucial to understand that voucher amounts are adjusted annually to reflect changes in housing costs. As of the latest data, the maximum voucher amount for a four-bedroom unit in Portland is $1,600, which falls below the market rent but is closer to the actual rental rates in ZIP 97239. Landlords participating in the voucher program should expect to receive regular increases in voucher amounts, though these may not always match the pace of rising market rents.
In conclusion, while the data raises valid points of concern regarding mortgage coverage, tenant demand, and voucher adequacy, it also provides insights into the realities of the ZIP 97239 real estate market. Investors must weigh these factors carefully and consider additional sources of income or cost-saving measures to ensure profitability.
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.