Location: Lincoln County, OR | Metro: Lincoln County, OR
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 | $1,250 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $489,830 | 0.33% | F |
| 3BR | $2,260 | $597,702 | 0.38% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 97366, located in Newport, Oregon, within Lincoln County, involve understanding the SAFMR (Small Area Fair Market Rent) and how it compares to the local market rent. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1,820. This figure represents the maximum amount that a Section 8 housing voucher can cover for rent in this specific area.
In contrast, the local market rent for a two-bedroom apartment, according to the Census ACS data, is $1,009. This indicates that the local rental market is significantly below the SAFMR, which can be advantageous for landlords participating in the program.
A landlord should know that the total reimbursement from a Section 8 voucher is not solely based on the SAFMR. It also includes the tenant's portion of the rent and any utility allowances. Typically, the tenant is expected to pay 30% of their income towards rent. If we assume an average income level where the tenant's portion is around $300, then the voucher would cover the remaining amount up to the SAFMR of $1,820.
Utility allowances vary but generally add a few hundred dollars to the monthly reimbursement. For example, if the utility allowance is $200, the total reimbursement could be calculated as follows: $300 (tenant portion) + $200 (utility allowance) = $500. Subtracting this from the SAFMR of $1,820 leaves $1,320 as the potential reimbursement for rent alone.
This calculation shows that even though the local market rent is lower at $1,009, the Section 8 voucher system allows landlords to receive a higher reimbursement rate. In practice, this means a landlord could potentially receive a surplus of $311 per month over the local market rent ($1,320 - $1,009).
However, it is important to note that the actual reimbursement depends on the tenant's income and other factors such as the specific terms of the voucher. Landlords should verify these details with the local housing authority to ensure they understand the full financial implications of accepting a Section 8 voucher.
In summary, for a two-bedroom apartment in ZIP code 97366, the SAFMR is $1,820, which is notably higher than the local market rent of $1,009. This discrepancy typically results in a surplus for landlords who participate in the Section 8 program, providing them with a financial benefit above the usual market rates.
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.