Location: Salem, OR | Metro: Corvallis, 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 | $1,360 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $389,689 | 0.47% | F |
| 3BR | $2,560 | $507,541 | 0.5% | F |
| 4BR | $3,090 | $615,351 | 0.5% | F |
| 5BR | $3,584 | $697,188 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,400 for ZIP 97370 (Philomath, OR) in fiscal year 2024 can adequately cover the mortgage on a home priced at $520,436. This concern is valid, especially considering that the typical monthly mortgage payment for a house of this value could exceed the FMR. However, the FMR does not account for potential appreciation in property value or the benefits of long-term ownership.
The second objection could be the relatively low renter demand in Philomath, represented by the 20.9% of households being renters. While this percentage indicates a smaller pool of potential tenants, it does not necessarily mean that demand is insufficient. The data from rental listings sites such as Zillow and ApartmentGuide suggests a moderate number of rental properties available, indicating some level of demand. However, the data does not provide a complete picture of the local rental market dynamics, which could include factors like tenant retention rates and the quality of rental properties.
Lastly, an investor might doubt if housing vouchers will keep pace with the market rents, which are currently around $1,444. The Housing Choice Voucher program aims to cover a significant portion of market rents, but the exact amount can vary based on the availability of funds and the specific needs of voucher recipients. The data provided does not offer a direct comparison between voucher amounts and market rents for ZIP 97370, making it difficult to definitively conclude whether vouchers will meet the current market rates. Nonetheless, the program's commitment to assisting low-income families in finding affordable housing remains a strong factor in supporting rental investments.
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.