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 | $1,760 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,490 | $469,225 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 97389 provides a clear picture of the potential rental income scenarios for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in FY 2024 is set at $1810 per month, while the market rent based on Census ACS data is $2,043 per month. These figures can be annualized to compare against the median home value of $459,879.
Annualizing the 2BR FMR of $1810 gives an annual rental income of $21,720. This translates into an implied gross yield of approximately 4.7%, calculated by dividing the annual rental income by the median home value. On the other hand, using the market rent of $2,043 results in an annual rental income of $24,516, implying a gross yield of around 5.3% under these conditions.
The higher gross yield based on market rent suggests a more favorable scenario for landlords seeking to maximize returns. However, the reality of the situation must consider the 38.3% renter density in ZIP 97389. This moderate renter density indicates that there is a significant portion of the population that might prefer homeownership over renting, which could impact the demand for rental properties.
Additionally, the lack of available data regarding the days on market (DOM) makes it challenging to predict how quickly a property might transition from being occupied by a Section 8 tenant to a market renter. Given the moderate renter density, it is reasonable to expect that transitioning between Section 8 and market rents could take longer than in areas with higher renter populations.
In conclusion, while the market rent scenario offers a slightly better gross yield at 5.3% compared to the Section 8 FMR's 4.7%, the practicality of achieving such yields depends heavily on the local rental market dynamics. Landlords and investors should weigh the benefits of higher yields against the potential challenges posed by the moderate renter density and the time required to transition tenants.
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.