Section 8 Fair Market Rent (FMR) for ZIP 97302 - 2027

Investment Score for ZIP 97302

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	$1,230
1 Bedroom	$1,240
2 Bedrooms	$1,620
3 Bedrooms	$2,240
4 Bedrooms	$2,450
5 Bedrooms	$2,842
6 Bedrooms	$3,183
7 Bedrooms	$3,438
8 Bedrooms	$3,610

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
2BR	$1,620	$350,337	0.46%	F
3BR	$2,240	$447,258	0.5%	F
4BR	$2,450	$559,687	0.44%	F
5BR	$2,842	$638,805	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97302 (Salem, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97302 is set by HUD for 2026, with the following figures: - 0BR: $1140 - 1BR: $1150 - 2BR: $1500 (which represents 21.0% of the median household income) - 3BR: $2080 - 4BR: $2250 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR property is $346,343, which translates into a monthly rental cost that is much higher than the FMR. The price-to-FMR ratio for a 2BR unit is 19.2x, indicating that the typical market rent far exceeds the FMR. This discrepancy means that voucher holders face significant constraints in finding affordable housing. They would likely be limited to units that are either below the FMR or in areas where rents are lower, such as older or less desirable neighborhoods. Additionally, landlords may be hesitant to accept Section 8 vouchers due to the high demand for properties and the potential for higher rental income without the voucher program. #### Affordability & Renter Profile ZIP code 97302 has a population of 40,799, with 38.5% of residents being renters. This indicates a substantial rental market, but it also suggests that competition for rental units is fierce. The occupancy rate stands at 95.5%, which implies that the market is quite tight, with few vacant units available. Given the median household income of $85,833, the FMR for a 2BR unit ($1500) represents only 21.0% of the median income. This makes it relatively affordable for those earning the median income, but it still leaves a large portion of the population unable to afford market-rate rents. The high price-to-FMR ratio (19.2x) further underscores the affordability challenge faced by many renters, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether the ZIP code can provide positive cash flow at the FMR levels. Given the high price-to-FMR ratio, it is unlikely that investors will find properties that offer positive cash flow at the FMR rates. The typical market rent for a 2BR unit is around $180 per month based on the Zillow median price, which is far above the FMR of $1500. The investment grade for this ZIP code would be considered low for Section 8-focused investors. The high market rents make it difficult to acquire properties at a price that allows for positive cash flow when renting at the FMR. Moreover, the tight market conditions suggest that there may be limited opportunities to purchase properties at reasonable prices. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units like 0BR or 1BR apartments. These units have lower FMRs ($1140 and $1150 respectively), which might allow for better cash flow if purchased at a discount. However, even these units are likely to be challenging due to the overall tightness of the market. 2. **Consider Older Properties**: Investors may want to look into older or less desirable properties where rents are typically lower. These units are more likely to fall within the FMR range and could be more attractive to voucher holders. For example, a 2BR unit in a less desirable neighborhood might rent for closer to the FMR of $1500 rather than the high market rate. 3. **Evaluate Government Programs**: Since the market is tight and rents are high, investors might benefit from exploring government programs that offer subsidies or incentives for landlords who accept Section 8 vouchers. These programs could help offset some of the financial challenges associated with renting at FMR levels. #### Bottom Line For Section 8-focused investors, the ZIP code 97302 (Salem, OR) presents a challenging environment. The high market rents and tight occupancy rates make it difficult to achieve positive cash flow at the FMR levels. Therefore, the recommendation is to **skip** this ZIP code unless you can identify specific niche opportunities or government programs that can improve the financial viability of your investments. If you do choose to invest, focus on smaller units or older properties where rents are more likely to align with the FMR.

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.