Location: Corvallis, OR | Metro: Albany, 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 | $1,220 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $275,437 | 0.51% | F |
| 2BR | $1,720 | $329,588 | 0.52% | F |
| 3BR | $2,380 | $493,888 | 0.48% | F |
| 4BR | $2,740 | $590,104 | 0.46% | F |
| 5BR | $3,178 | $645,237 | 0.49% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 97321, Albany, OR, include significant tenant turnover due to the disparity between the market rent of $1,651 and the Fair Market Rent (FMR) of $1350 for FY 2024. Landlords might face challenges in attracting tenants willing to pay the lower FMR rate, leading to higher turnover rates which can be costly and time-consuming.
Vacancy exposure is another concern, especially given that homes typically take about 30 days to sell or rent in this area. This extended period of vacancy can result in lost rental income, increasing the financial burden on the landlord. Moreover, the average home value in ZIP 97321 is $508,986, while the median household income is only $99,416. This gap suggests that many residents may struggle to afford maintenance costs, potentially leaving landlords to cover deferred maintenance expenses out-of-pocket.
However, these risks must be weighed against the fact that 26.9% of the population in this ZIP code are renters. High renter density generally indicates a robust demand for rental properties, including those utilizing Section 8 vouchers. The presence of a large number of renters can mitigate some of the risks associated with vacancy and deferred maintenance, as there is a steady pool of potential tenants who can quickly fill vacancies and maintain occupancy.
In conclusion, despite the potential issues of tenant turnover and vacancy exposure, the high renter density in ZIP 97321 supports a moderate risk level for a first-time Section 8 landlord.
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.