Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,620 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
The investment risk assessment for ZIP 97298 in Unknown, OR, highlights several potential issues that could affect a Section 8 landlord. Firstly, the tenant turnover rate is unknown, but it's important to note that the Fair Market Rent (FMR) for the area is set at $2150 for FY 2024. This figure represents the maximum amount that a voucher holder can pay towards their housing, which may impact the stability of tenancy if market rents significantly exceed this threshold.
Vacancy exposure is another concern due to the lack of data on days on market (DOM). Without this information, it's difficult to gauge how quickly properties in this ZIP code might fill up, especially considering the high FMR. A prolonged period of vacancy can lead to financial strain, particularly if the landlord is not prepared for such delays in rental income.
Deferred maintenance is also a risk factor. The typical home value and median income for ZIP 97298 are not available, which makes it challenging to assess the likelihood of tenants being able to contribute to the upkeep of the property. In areas where median incomes are lower than the cost of living, tenants might struggle to afford necessary repairs, leaving landlords responsible for maintaining the property's condition.
However, these risks must be weighed against the high renter density in the area. Although the exact percentage of renters is unknown, high renter density typically translates into a higher demand for rental vouchers. This suggests that there could be a robust pool of potential voucher holders looking for housing, which could mitigate some of the risks associated with vacancy and tenant turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 97298 is moderate. While there are significant unknowns regarding the local market conditions, the presence of a dense rental population offers a promising counterbalance to the identified risks.
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.