Location: Salem, OR | Metro: Salem, 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 | $1,500 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,970 | $352,022 | 0.56% | F |
| 3BR | $2,730 | $424,982 | 0.64% | D |
| 4BR | $2,980 | $462,778 | 0.64% | D |
U.S. Census Bureau data (2024)
The dynamics of ZIP 97351, Independence, OR, reveal a market in motion, characterized by a balance between affordability and demand. The Fair Market Rent (FMR) for the area stands at $1,490 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,890. This suggests that the rental market is slightly above the government's affordability threshold, indicating a healthy demand for rental properties.
The low price-cut share of 0.2% implies that landlords and homeowners are not frequently reducing their asking prices, which could be indicative of a stable market where property values hold steady. However, the lack of available data on days on market (DOM) makes it challenging to draw definitive conclusions about the speed at which homes are selling.
The median home value in ZIP 97351 is $427,798, which places it within a moderate range for the region. This figure, combined with the FMR and ZORI, suggests that homeownership remains a viable option but not without financial strain for some residents. The significant 43.3% renter share highlights a substantial portion of the population choosing or needing to rent rather than buy, which can put long-term pressure on the rental market.
In this context, the rental market is likely experiencing sustained demand, as evidenced by the higher ZORI compared to the FMR. This could mean that landlords who maintain competitive rents will continue to attract tenants. The high percentage of renters also signals a potential for ongoing growth in the rental sector, driven by both economic necessity and lifestyle choices.
The interplay between these factors—rent levels, median home value, and renter share—creates a market where demand for rentals is strong, yet homeownership remains accessible. Landlords and small-portfolio investors should focus on maintaining properties that meet the needs of renters while being mindful of the broader economic landscape to ensure continued occupancy and profitability.
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.