Location: Salem, 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 | $1,120 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $288,207 | 0.55% | F |
| 3BR | $2,190 | $394,374 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP 97360 in Mill City, OR, are significant and should be carefully considered. First, tenant turnover could pose a challenge. The market rent stands at $1,371, while the Fair Market Rent (FMR) for FY 2024 is $1,320. This discrepancy suggests that landlords might struggle to attract tenants who can only afford the FMR, leading to higher turnover rates. Second, vacancy exposure is another concern. With an unknown number of days on the market (DOM), it's difficult to predict how long properties will remain vacant. Lastly, there is a substantial deferred-maintenance exposure. Given the typical home value of $359,599 and the median income of $67,250, many residents may not have the financial capacity to maintain their homes properly, which could result in higher repair costs for landlords.
However, these risks must be weighed against the high concentration of renters in the area. The renter share is 30.8%, indicating a robust demand for rental properties. This high density of renters often translates into a strong interest in Section 8 vouchers, which can provide a steady stream of tenants. Despite the challenges, the presence of a large renter population can mitigate some of the risks associated with vacancy and maintenance.
In summary, the risks of investing in Section 8 properties in ZIP 97360 include high tenant turnover, uncertain vacancy periods, and deferred maintenance costs. Yet, the high renter share suggests a strong demand for affordable housing. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.