Section 8 Fair Market Rent (FMR) for ZIP 97303 - 2027

Investment Score for ZIP 97303

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	$1,280
1 Bedroom	$1,280
2 Bedrooms	$1,680
3 Bedrooms	$2,320
4 Bedrooms	$2,550
5 Bedrooms	$2,958
6 Bedrooms	$3,313
7 Bedrooms	$3,578
8 Bedrooms	$3,757

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	$1,680	$374,089	0.45%	F
3BR	$2,320	$439,945	0.53%	F
4BR	$2,550	$523,017	0.49%	F
5BR	$2,958	$577,482	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97303 (Keizer, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97303 in 2026 is set at $1540 for a two-bedroom unit. This amount represents 21.8% of the median household income of $84,871. However, it is important to understand how this compares to actual rents in the area. According to Zillow, the median price for a two-bedroom home in Keizer is $367,178, which translates to a price-to-FMR ratio of 19.9x. This means that the actual rent prices are significantly higher than the FMR, creating a challenge for voucher holders who can only pay up to the FMR amount. For instance, if a landlord charges $1540 per month for a two-bedroom unit, a Section 8 tenant would have to find additional funds to cover the difference between the FMR and the actual rent, which could be substantial given the high price-to-FMR ratio. #### Affordability & Renter Profile Keizer has a population of 40,659, with 37.0% of residents being renters. The occupancy rate stands at 97.4%, indicating a robust demand for rental properties. Given the median household income of $84,871, the affordability of housing is a significant concern for many residents. The high price-to-FMR ratio suggests that the rental market is quite tight, with limited options available for those relying solely on Section 8 vouchers. This tightness is further compounded by the fact that the FMR for a two-bedroom unit ($1540) is only a fraction of what the typical market rent might be. Therefore, the renters in this area are likely to be a mix of those who can afford market rates and those who heavily rely on subsidies like Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 97303 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1540, but the actual market rent is much higher. If an investor is willing to accept the FMR as the maximum rent, they must consider whether this will result in a cash-flow positive property. Given the high price-to-FMR ratio, it is likely that the actual cost of maintaining and operating a rental property would exceed the FMR, making it challenging to achieve positive cash flow. However, there is a potential upside for investors who can leverage the strong demand for rental properties. While accepting Section 8 vouchers may limit rental income, the high occupancy rate suggests that finding tenants should not be difficult. Additionally, the relatively high median household income indicates that there is a segment of the population that can afford market rates, providing flexibility for landlords to potentially increase rents beyond the FMR for non-voucher tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1190, which is still a significant portion of the median income. Smaller units are often more affordable and may attract a broader range of tenants, including those who do not require a voucher. 2. **Utilize Mixed Tenancy**: To maximize profitability, landlords could implement a mixed tenancy strategy where some units are rented to Section 8 voucher holders and others to market-rate tenants. This approach allows for leveraging the strong demand while also ensuring a steady stream of income from tenants who can pay above the FMR. 3. **Consider Location-Specific Strategies**: Within Keizer, certain neighborhoods may offer better opportunities for positive cash flow. Investors should conduct detailed neighborhood analyses to identify areas where the actual rent prices are closer to the FMR, thereby reducing the financial strain of accepting vouchers. #### Bottom Line For Section 8-focused investors, Keizer presents a challenging environment due to the high price-to-FMR ratio. While the strong demand for rental properties and high occupancy rates are positive indicators, the actual rents far exceed the FMR, making it difficult to achieve positive cash flow when accepting vouchers. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they can find ways to reduce operational costs or focus on smaller units where the FMR is closer to market rates. Alternatively, investors might consider a mixed tenancy strategy to balance the financial impact of accepting vouchers with renting to market-rate tenants.

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.