Location: Salem, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $322,550 | 0.47% | F |
| 2BR | $1,830 | $379,980 | 0.48% | F |
| 3BR | $2,530 | $470,632 | 0.54% | F |
| 4BR | $2,800 | $563,565 | 0.5% | F |
| 5BR | $3,248 | $632,803 | 0.51% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 97304, located in Salem, Oregon, and part of the Salem, OR Metropolitan Statistical Area (MSA), does not fully align with federal guidelines. The Federal Market Rent (FMR) for FY 2024 is set at $1660, whereas the actual market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,743. This suggests that landlords may face challenges in qualifying tenants under the Section 8 program due to the discrepancy between subsidized rates and market demands.
Acquisition in this area remains relatively affordable for potential investors. With a median home value of $498,898, the cost of entry into the real estate market is moderate. The average days on market (DOM) is 59, indicating a fairly quick turnover rate for properties. Additionally, only 0.3% of listings experience price cuts, which implies that once a property is listed, it typically sells at or near its asking price without significant adjustments.
Tenant demand in ZIP 97304 is robust, driven by a population of 34,879 residents, of which 35.7% are renters. This high percentage of renters signals strong interest in rental properties, providing a solid foundation for landlords and small-portfolio investors looking to capitalize on the housing market dynamics.
In summary, while the rent math presents a challenge due to the gap between FMR and ZORI, the acquisition costs remain reasonable with quick sales and minimal price adjustments. Tenant demand is substantial, making ZIP 97304 an attractive investment opportunity despite the financial constraints imposed by Section 8. Landlords should carefully consider these factors before deciding to participate in the program within this ZIP code.
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.