Location: Salem, OR | Metro: Salem, OR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
U.S. Census Bureau data (2024)
The ZIP code 97373 presents several challenges for landlords and small-portfolio investors considering Section 8 investments. Tenant turnover is a significant concern, as the Fair Market Rent (FMR) for FY 2024 is set at $1130, which does not align with the current market rent levels. This discrepancy can lead to higher tenant mobility, as individuals might seek more affordable housing options outside the voucher system.
Vacancy exposure is another critical issue. With no available data on days on market (DOM), it's difficult to predict how long a property might remain vacant between tenants. This uncertainty can impact cash flow and overall profitability. Additionally, there is a risk of deferred maintenance due to the lack of specific figures regarding typical home values and median incomes. Without these metrics, it's challenging to gauge the financial capacity of residents to maintain homes adequately, potentially leading to higher repair costs and maintenance needs.
Despite these risks, the high concentration of renters in the area suggests strong demand for Section 8 vouchers. A high renter share typically indicates that there are many individuals who rely on rental housing and may require assistance through government programs. This demand can stabilize occupancy rates and ensure a steady stream of rental income, even if it comes with the constraints of the Section 8 program.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.