Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
The economics of Section 8 in ZIP code 97282, which falls within the Portland-Vancouver-Hillsboro County area, operate based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1990 for fiscal year 2024. This SAFMR is specifically tailored to this ZIP code, reflecting the unique rental market conditions here.
A landlord participating in the Section 8 program will receive payments directly from the housing authority to cover the difference between the tenant's contribution and the total rent. The tenant is required to pay 30% of their adjusted income towards rent. For example, if a tenant has an adjusted monthly income of $1600, they would contribute $480 towards the rent of a two-bedroom unit.
In addition to the tenant's payment, the housing authority also provides a utility allowance. This allowance varies but is generally around $200-$300 per month for a two-bedroom apartment. Thus, the total reimbursement a landlord can expect from the housing authority is the SAFMR ($1990) minus the tenant's contribution ($480), plus the utility allowance ($250).
This calculation yields a reimbursement of $1760 ($1990 - $480 + $250). However, the local market rent for a two-bedroom apartment in ZIP 97282 is currently unavailable. Therefore, it is essential to monitor local rental listings to understand how the SAFMR compares to the actual market rates.
If the market rent is below the SAFMR, landlords might see a surplus. Conversely, if the market rent exceeds the SAFMR, there will be a reimbursement gap. For instance, if the market rent were $2200, the landlord would have a reimbursement gap of $440 per month. On the other hand, if the market rent were $1800, the landlord would receive a surplus of $160 per month.
To determine whether participating in Section 8 makes financial sense for your property, compare the SAFMR ($1990) to the prevailing market rents in ZIP 97282. This comparison will help you decide if the potential reimbursement gap or surplus aligns with your investment goals.
Data Sources: FMR data from HUD (2027).
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.