Location: Albany, 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 | $1,800 |
| 1 Bedroom | $2,120 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,570 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,570 | $388,571 | 0.92% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 97348 reveals an interesting scenario when comparing the Federal Market Rent (FMR) to the actual market rent. Using the annualized FMR of $1400 for a 2-bedroom unit (FY 2024), the implied gross yield can be calculated as follows:
To find the gross yield based on the FMR, we use the formula: Gross Yield = (Annual Rent / Property Value) * 100. For ZIP 97348, this yields: ($1400 * 12) / $397,634 * 100 = 4.12%. This means that if a landlord were to rely solely on the FMR provided by the government, they would achieve a gross yield of 4.12%.
However, when considering the market rent of $1,863 per month (as reported by the Census ACS), the gross yield increases significantly. Calculating the gross yield based on market rent gives us: ($1,863 * 12) / $397,634 * 100 = 5.61%. Therefore, the gross yield for a property rented at market rates is 5.61%.
Given the renter density of 22.7%, it is evident that the market rent scenario is more realistic for most properties in ZIP 97348. The low renter density suggests that a significant portion of homeowners are likely to be owner-occupiers rather than tenants, making the higher market rent more applicable in most cases. Additionally, the N/A-day DOM (Days on Market) indicates that there is no readily available data on how long properties typically stay on the market before being leased, which could imply either a stable rental market or insufficient data to draw conclusions. In either case, the higher gross yield from market rents offers a clearer picture of potential returns for landlords and small-portfolio investors.
In summary, while the Section 8 program provides a guaranteed income of $1400 per month for a 2BR unit, leading to a gross yield of 4.12%, the market rent of $1,863 per month translates into a more substantial gross yield of 5.61%. Given the context of ZIP 97348, the latter figure is more reflective of what landlords might expect in terms of rental income.
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.