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 | $1,340 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $364,243 | 0.48% | F |
| 3BR | $2,440 | $414,278 | 0.59% | F |
| 4BR | $2,670 | $642,375 | 0.42% | F |
| 5BR | $3,097 | $717,485 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 97317 in Salem, Oregon, presents a market in motion, characterized by a delicate balance between supply and demand. The Fair Market Rent (FMR) for ZIP 97317 is set at $1540 for fiscal year 2024, closely matching the market rent indicated by the Zillow Observed Rent Index (ZORI) at $1,546. This alignment suggests that the rental market is stable, with neither significant surplus nor shortage of rental properties.
A price-cut share of only 0.2% implies that landlords are largely able to maintain their asking rents without needing to reduce prices to attract tenants, indicating strong demand for rental units. However, the lack of data on days on market (DOM) means we cannot definitively assess how quickly properties are being rented or sold. The median home value of $454,284 provides a benchmark for homeownership costs in the area, which can influence rental dynamics as potential buyers might delay purchases due to high home values, thus sustaining the rental market.
The 29.2% renter share is noteworthy. It signals a substantial portion of the population prefers or needs to rent rather than buy, which can exert long-term housing pressure on the market. As more individuals and families opt for rentals, the demand for rental properties increases, potentially leading to higher rental rates and occupancy levels. This trend supports the idea that 97317 is a market where demand is robust and likely to persist, making it attractive for landlords and small-portfolio investors who can offer competitive rental options.
In summary, 97317's rental market is dynamic, with strong demand evident through the low price-cut share and the significant renter population. The close parity between FMR and market rent indicates stability, while the high median home value may keep some potential buyers in the rental market, ensuring steady demand for rental properties.
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.