Location: Albany, OR | Metro: Albany, 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 | $1,130 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $221,895 | 0.6% | F |
| 2BR | $1,620 | $269,864 | 0.6% | D |
| 3BR | $2,230 | $366,054 | 0.61% | D |
| 4BR | $2,510 | $438,078 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 97386, which encompasses Sweet Home, Oregon, revolves around the relationship between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1310, while the Census ACS data indicates that the market rent is $1303. This means the FMR is $7 higher than the market rent, representing a slight increase of approximately 0.54%. Despite this minimal difference, it's crucial to understand how this impacts landlords and small-portfolio investors.
The gap, however small, suggests that voucher tenants can provide a yield play for landlords. With the government covering rents at the FMR level, landlords can secure a steady income stream that slightly exceeds the current market rates. This stability is particularly valuable in an area where only 27.5% of residents are renters, indicating a smaller pool of potential tenants compared to more densely populated areas. The median home value in Sweet Home is $349,348, and the median income is $64,669, which provides additional context for the rental market dynamics.
The fact that the FMR is higher than the market rent means that landlords accepting Section 8 vouchers can potentially charge more than what non-voucher tenants might be willing to pay. This could help offset the administrative burden and costs associated with managing properties under the Section 8 program. However, it also implies that landlords who rely solely on market-rate tenants may face a challenge in pricing their units competitively without losing out to voucher-supported rentals.
In summary, the slight edge in favor of FMR over market rent in ZIP 97386 makes Section 8 a viable option for landlords seeking stable and predictable rental income. While the difference is only $7, or about 0.54%, it can be significant in a rental market where competition for tenants is not as fierce as in larger metropolitan areas. Landlords should weigh this against the operational complexities of the Section 8 program but can expect a modest advantage in terms of rental yield.
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.