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 | $1,430 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $424,909 | 0.41% | F |
| 3BR | $2,390 | $526,492 | 0.45% | F |
| 4BR | $2,880 | $612,935 | 0.47% | F |
| 5BR | $3,341 | $676,139 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 housing program in ZIP code 97267, located in Portland, OR, presents an interesting scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as determined by HUD for fiscal year 2024, is set at $1840. In contrast, the actual market rent, measured by Zillow's ZORI index, stands at $1714. This indicates that the FMR exceeds the market rent by $126, or approximately 7.35%.
The gap suggests that landlords can potentially benefit from accepting Section 8 tenants. With voucher holders, landlords receive a guaranteed rent that is higher than what the open market currently offers. This makes it a favorable yield play, especially considering the broader economic context of Portland. The city has a median home value of $542,958 and a median income of $87,418, which underscores the financial challenges many residents face in finding affordable housing. Given that 28.2% of Portland residents are renters, the demand for subsidized housing is significant.
By participating in the Section 8 program, landlords ensure a steady and reliable income stream that is above the average market rate. This stability is particularly valuable in a market where rents might fluctuate due to economic conditions or changes in supply and demand. Moreover, the difference between the FMR and market rent provides a buffer against potential maintenance costs and vacancy periods, enhancing overall profitability.
However, it is important to note that while the higher FMR represents a financial advantage, landlords must also be prepared to manage the administrative requirements associated with the Section 8 program. These include regular inspections and adherence to housing quality standards, which are necessary to maintain eligibility for the program.
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.