Location: Salem, OR | Metro: Albany, OR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 97346 are straightforward and can be broken down into several key components. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1140. This figure is specific to ZIP 97346, meaning it reflects the rental conditions and costs particular to this area.
In comparison, the local market rent for a similar two-bedroom unit in ZIP 97346 is slightly higher at $1,152, based on recent Census ACS data. This indicates that the SAFMR is just below the average local market rent, which is crucial for understanding how much landlords can realistically expect from Section 8 vouchers.
A Section 8 voucher works by covering the difference between what a tenant can afford and the actual cost of housing. For a two-bedroom apartment, the tenant is typically expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month for tenants in this program, the tenant's contribution would be $450. The remainder, up to the SAFMR, is then covered by the government.
In addition to the base rent, Section 8 also provides utility allowances. These vary but generally add around $200 to $300 to the total monthly payment. Therefore, if the tenant's portion is $450 and the utility allowance is $250, the total reimbursement from the government would be $1140 - $450 = $690 plus the utility allowance of $250, making the total reimbursement $940.
This means that for a two-bedroom apartment in ZIP 97346, the typical reimbursement gap is $1,152 - $940 = $212. Landlords will need to decide whether they can accept this lower rent or if they should seek other tenants who can pay the full market rate of $1,152.
Note that these calculations are based on averages and the actual reimbursement can vary depending on the specific circumstances of the tenant and their income. However, for most cases, landlords can expect a reimbursement close to the SAFMR of $1140, minus the tenant's contribution and including utility allowances.
Data Sources: FMR data from HUD (2027). 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.