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 |
|---|---|---|---|---|
| 2BR | $1,730 | $329,363 | 0.53% | F |
| 3BR | $2,360 | $390,778 | 0.6% | D |
| 4BR | $2,800 | $461,634 | 0.61% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 97378 (Sheridan, OR) presents a nuanced landscape for landlords and small-portfolio investors. With a median home value at $400,341, the area maintains a relatively stable position, indicative of a balanced market where neither buyers nor sellers hold overwhelming advantage.
A key signal comes from the fact that only 0.2% of listings have reduced their prices, suggesting that sellers are holding firm on their asking prices. This implies strong seller confidence and indicates that the market may be resilient against downward price pressures, preserving pricing power for the near future. However, the median days on market (DOM) being listed as N/A could imply either an extremely fast-moving market where homes sell quickly or an issue with data reporting. In either case, it suggests that homes are not lingering on the market, which supports the idea of a robust demand environment.
On the rental side, the Forward Monthly Rent (FMR) set at $1,660 for ZIP 97378 in fiscal year 2024 contrasts sharply with the current market rent of $1,226 based on Census ACS data. This gap signals potential upward pressure on rents, as the government's FMR is designed to reflect the average rent for a modest home in good condition, adjusted annually for inflation. The discrepancy between FMR and actual market rates suggests that landlords might have room to increase rents without significantly impacting occupancy rates.
For long-term investors, the setup implies a cautious approach to appreciation. While the median home value and low percentage of price reductions suggest stability, the absence of clear appreciation trends means that capital gains should not be the primary focus. Instead, the focus should shift towards rental income, given the potential for rent increases. Investors can leverage the disparity between FMR and current market rents to adjust their rental pricing strategies, ensuring they remain competitive while maximizing returns.
In summary, ZIP 97378 offers a stable base for investment, with a balanced market and potential for rental growth. Landlords and investors should capitalize on the current demand dynamics and consider strategic adjustments to rental pricing to align with the FMR trajectory, rather than expecting significant home value appreciation over the next 12-24 months.
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.