Section 8 Fair Market Rent (FMR) for ZIP 97330 - 2027

Investment Score for ZIP 97330

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,370
1 Bedroom	$1,500
2 Bedrooms	$1,870
3 Bedrooms	$2,590
4 Bedrooms	$3,120
5 Bedrooms	$3,619
6 Bedrooms	$4,053
7 Bedrooms	$4,377
8 Bedrooms	$4,596

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,500	$390,773	0.38%	F
2BR	$1,870	$426,786	0.44%	F
3BR	$2,590	$541,723	0.48%	F
4BR	$3,120	$672,748	0.46%	F
5BR	$3,619	$728,721	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97330 (Corvallis, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97330 in 2026 is set at $1650 for a two-bedroom unit, which represents 28.0% of the median household income of $70,742. However, the actual rental market in Corvallis is significantly higher, with the Zillow median price for a two-bedroom unit being $418,850. This translates into a price-to-FMR ratio of 21.2x, indicating that actual rents are far above the FMR levels. For instance, if we assume a typical rental yield based on the Zillow median price, the monthly rent would be around $1750, which is already above the FMR of $1650. This means that Section 8 voucher holders face significant constraints when trying to find suitable housing. The vouchers are only valid up to the FMR level, so landlords who charge more than $1650 for a two-bedroom unit will not accept Section 8 tenants unless they can negotiate a lower rent. Given the high actual rental prices, it is likely that many voucher holders struggle to find affordable housing, leading to potential issues with vacancy rates among properties that do accept Section 8 tenants. #### Affordability & Renter Profile ZIP code 97330 has a population of 43,878, with 48.4% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate stands at 93.9%, suggesting that the market is relatively tight, with few vacant units available. The high renter percentage combined with a high occupancy rate implies that there is strong competition for rental units, making it difficult for low-income individuals to secure housing without assistance like Section 8 vouchers. Given the median household income of $70,742, the affordability of housing is a significant concern. The high price-to-FMR ratio suggests that the market is overpriced relative to what most residents can afford. This tight market condition is likely to persist due to the high demand and limited supply of affordable units. #### Investor Angle From an investor perspective, the ZIP code 97330 presents both opportunities and challenges. The actual rental prices are much higher than the FMR, which means that investors who can secure tenants paying market rates will have a positive cash flow. However, for those focusing specifically on Section 8 tenants, the situation is less favorable. Landlords who accept Section 8 vouchers must adhere to the FMR limits, which are significantly below the market rates. For example, a two-bedroom unit priced at $1750 per month would only receive $1650 from a Section 8 tenant. This leaves little room for profit margins, especially considering the costs associated with maintaining and managing rental properties. In terms of investment grade, the ZIP code 97330 is rated as moderate risk. While there is a strong demand for rental properties, the tight market and high actual rental prices make it challenging to find a balance between accepting Section 8 tenants and achieving a positive cash flow. Investors should carefully consider their target tenant base and the potential impact on their financial returns. #### Specific Actionable Insights 1. **Target Market Rate Tenants**: Given the high actual rental prices and the tight market, investors should focus on securing tenants who can pay market rates rather than relying solely on Section 8 vouchers. A two-bedroom unit priced at $1750 per month would generate a higher cash flow compared to the FMR limit of $1650. 2. **Consider Mixed Tenant Strategies**: To mitigate risks and ensure steady cash flow, investors might consider a mixed strategy where they accept both market-rate tenants and Section 8 voucher holders. This approach allows for diversification and can help stabilize income streams. 3. **Evaluate Property Costs**: Before investing, it is crucial to evaluate the total cost of owning and maintaining a property in ZIP code 97330. With the FMR for a two-bedroom unit being $1650, investors need to ensure that their expenses, including mortgage payments, maintenance, and property taxes, are covered by this amount. If not, they may need to look for ways to reduce costs or increase revenue through other means. #### Bottom Line For investors focused specifically on Section 8 tenants, the recommendation for ZIP code 97330 is to **Skip**. The high actual rental prices and the tight market conditions make it challenging to achieve a positive cash flow while adhering to the FMR limits. Instead, investors might want to explore other ZIP codes with more favorable price-to-FMR ratios or consider a broader mix of tenant types to ensure better financial performance.

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.