Location: Salem, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA 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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $470,772 | 0.5% | F |
| 4BR | $2,800 | $551,312 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 97362 is a significant rental market with 40.4% of its population renting homes. This makes it a renter-heavy area, ideal for landlords looking to attract Section 8 tenants. The total population of 4,110 suggests a moderate-sized community, but with nearly half of residents being renters, there is substantial demand for rental properties.
Average market rent in this area stands at $1,279 per month, which is notably lower than the Fair Market Rent (FMR) set at $1,660 for FY 2024. This indicates that landlords can potentially offer more competitive rents while still meeting the needs of voucher holders. The median household income in 97362 is $66,250, meaning that typical market rent consumes approximately 25.3% of the annual income of a median household. However, for those relying on Section 8 vouchers, the rent burden is significantly less, aligning closely with the voucher's limit of up to $1,660.
To calculate the exact percentage of income that market rent eats, we can use the following: ($1,279 * 12) / $66,250 = 25.3%. This shows that market rent is manageable for most residents, but it also highlights that a portion of the population might be seeking subsidized housing options due to affordability concerns.
In terms of tenant profiles, landlords in 97362 can expect a mix of low-income families, individuals with disabilities, and elderly persons who qualify for Section 8 assistance. These tenants will typically have their rent capped at $1,660, allowing them to live comfortably without overextending their finances. Landlords should prepare for a steady demand for units that meet the eligibility criteria for Section 8, ensuring that their properties are well-maintained and comply with HUD standards.
The disparity between the market rent and the FMR also suggests that there could be opportunities for landlords to slightly increase rents while still remaining within the voucher limits, thus attracting both voucher and non-voucher tenants. This flexibility can be beneficial in managing cash flows and property maintenance budgets.
In conclusion, ZIP 97362 offers a robust rental market with a high concentration of potential Section 8 tenants. With careful management and adherence to program guidelines, landlords can successfully navigate this market, providing affordable housing solutions while maintaining financial stability.
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.