Location: Salem, OR | Metro: Salem, OR 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 | $1,430 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $354,348 | 0.53% | F |
| 3BR | $2,600 | $463,876 | 0.56% | F |
| 4BR | $2,850 | $597,411 | 0.48% | F |
| 5BR | $3,306 | $685,882 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 97306 in Salem, OR, presents a dynamic rental market that reflects strong demand relative to supply. With a Fair Market Rent (FMR) set at $1,360 for fiscal year 2024, and the Zillow Observed Rent Index (ZORI) indicating a higher market rent of $1,657, it's evident that landlords can command rents above the government benchmark. This discrepancy suggests that the local rental market is robust, driven by factors such as employment opportunities, population growth, and the overall desirability of the area.
The low price-cut share of 0.2% indicates that properties listed for rent are generally priced appropriately, or slightly above, their true market value without the need for significant adjustments. This is further supported by the relatively short days on market (DOM) of 34 days, which is indicative of quick turnover and a competitive environment where listings move swiftly.
A median home value of $495,779 places Salem in an affordable range compared to many metropolitan areas, making homeownership a viable option for many residents. However, the 30.7% renter share points to a substantial portion of the population choosing or needing to rent rather than buy. This high percentage of renters suggests ongoing housing pressure, as rental demand remains steady or increasing. Long-term, this could indicate a market where rental properties will continue to be sought after, due to either financial constraints preventing homeownership or lifestyle choices favoring renting over buying.
The interplay between these metrics—rents above FMR, low price-cut share, short DOM, and high renter share—paints a picture of a market where demand is currently outpacing supply. Landlords and small-portfolio investors should take note of these dynamics, as they suggest a favorable environment for rental income generation and property appreciation.
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.