Section 8 Fair Market Rent (FMR) for ZIP 97301 - 2027

Investment Score for ZIP 97301

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,220
1 Bedroom	$1,230
2 Bedrooms	$1,610
3 Bedrooms	$2,230
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,230	$268,067	0.46%	F
2BR	$1,610	$321,773	0.5%	F
3BR	$2,230	$382,422	0.58%	F
4BR	$2,440	$433,198	0.56%	F
5BR	$2,830	$470,911	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97301 (Salem, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97301 is set by HUD to ensure that low-income households can afford housing. For 2026, the FMRs are as follows: - 0BR: $1130 - 1BR: $1150 - 2BR: $1490 (which is 29.6% of the median household income) - 3BR: $2060 - 4BR: $2230 However, the actual rental market in 97301 is significantly higher. The Zillow median price for a 2BR unit is $316,656, which translates to a monthly rent of approximately $1,236 based on typical mortgage payments. This is already above the FMR for a 2BR unit ($1490). Given the high price-to-FMR ratio of 17.7x, it suggests that actual rents are far above the FMR. For voucher holders, this means they face significant constraints. The maximum rent they can pay under a Section 8 voucher is capped at the FMR, which is lower than the actual market rates. Therefore, finding units that accept vouchers and fall within the FMR limits is challenging. #### Affordability & Renter Profile ZIP code 97301 has a population of 57,574, with 57.2% being renters. This indicates a strong rental market, but also one where affordability is a concern. The median household income is $60,422, and the FMR for a 2BR unit represents 29.6% of this income. This suggests that a substantial portion of the population struggles to find affordable housing, especially those relying on Section 8 vouchers. Given the occupancy rate of 94.1%, the market is relatively tight, indicating that there is little excess supply. This tightness contributes to the high rents and makes it difficult for low-income households to secure housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 97301 presents a mixed picture. While the actual rents are high, the FMRs set by HUD are much lower. For instance, a 2BR unit with an FMR of $1490 would be cash-flow negative if the actual rent is closer to the Zillow median of around $1,236 per month. This implies that landlords who rely solely on Section 8 vouchers may struggle to cover their costs. The investment grade for this ZIP code would likely be rated as moderate to low due to the high price-to-FMR ratio and the challenges associated with renting to voucher holders. Investors looking to maximize returns might find it difficult to achieve positive cash flow when adhering strictly to FMR guidelines. #### Specific Actionable Insights 1. **Target Larger Units**: Given the high price-to-FMR ratio, investors should consider focusing on larger units such as 3BR and 4BR properties. These units have higher FMRs ($2060 and $2230 respectively), which are closer to the actual market rates. This could help mitigate the risk of cash-flow negativity. 2. **Consider Non-Voucher Tenants**: While Section 8 vouchers are important, investors might want to explore options for non-voucher tenants. The actual market rates are much higher than the FMRs, and there is a significant portion of the population (42.8%) that does not rely on rental assistance. This segment might provide better financial returns. 3. **Evaluate Location-Specific Factors**: Within ZIP code 97301, certain neighborhoods may offer more favorable conditions for Section 8-focused investments. Conducting a detailed neighborhood analysis could reveal areas where rents are slightly below the overall median, potentially making them more attractive for voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 97301 is to **Skip**. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow while adhering to HUD guidelines. Investors might find better opportunities in other ZIP codes with lower ratios and more accommodating rental markets. If investing in 97301, focus on larger units and consider diversifying tenant types to include non-voucher holders.

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.