Location: Lincoln County, OR | Metro: Corvallis, 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 | $1,310 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,290 | $494,562 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 97324, located in Lincoln County, Oregon, reveals a mixed scenario regarding cash flow potential. The HUD Fair Market Rent (FMR) for ZIP 97324 is set at $1,290 for fiscal year 2024. In comparison, the market rent as reported by the Census American Community Survey (ACS) is $1,193. This indicates that voucher tenants would generally cashflow at the FMR rate, albeit marginally.
To derive the rent-to-price ratio, we can use the median home value of $462,485. Assuming an average mortgage rate and typical down payment, the monthly mortgage payment for a median-priced home would be approximately $2,200. At the HUD FMR rate of $1,290, the rent covers about 59% of the mortgage payment, suggesting a modest cash flow but also highlighting the importance of property management efficiency.
The data does not provide a specific median Days on Market (DOM) or percentage of price cuts, but given the higher FMR compared to market rent, it's important to note that investors might face challenges in finding units that both meet the voucher requirements and command rents close to the FMR. This dynamic suggests that cash flow is likely to be tighter unless investors focus on premium units that can justify higher rents.
In summary, while the FMR provides a slight advantage over market rent, the strong rent-to-price ratio implies that investors in ZIP 97324 should prioritize properties with low maintenance costs and efficient operations to maximize profitability. The most compelling angle for investors remains stability, given the consistent demand for affordable housing and the government-backed nature of Section 8 vouchers.
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.