Location: Lincoln County, OR | Metro: Lincoln County, OR
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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $285,477 | 0.47% | F |
| 3BR | $1,840 | $395,351 | 0.47% | F |
| 4BR | $2,240 | $466,176 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 97391, located in Toledo, OR within the Lincoln County metro area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. With an average monthly rent of $1,188 compared to the Fair Market Rent (FMR) of $1,320 for the metro area in fiscal year 2026, the spread indicates a potential for positive cash flow. However, the median home value of $358,516 means that landlords must manage expenses carefully to ensure profitability.
The high price-to-rent ratio of 25.2 suggests that cash flow is challenging at these prices, making it imperative to focus on tenant screening and local relationships to mitigate risks. The 37% renter share in 97391 is significant and provides a steady pool of potential tenants. Despite this, the median income of $56,089 is below average, which could affect tenant stability and ability to pay rent.
To succeed in this market, landlords should prioritize properties that meet the criteria for positive cash flow. For instance, a 4-bedroom property valued at $465,268 with an estimated rent of $2,210 would offer a 3.4% capitalization rate and a 5-year compound annual growth rate (CAGR) of +8.5%, making it a viable option. This balance between rental income and property value helps maintain cash flow while offering some appreciation potential.
In conclusion, ZIP 97391 is best suited as a cash-flow anchor due to the strong rental market and the spread between FMR and actual rents. Landlords must execute their strategies meticulously, focusing on tenant selection and local knowledge to navigate the challenges posed by below-average income levels and higher unemployment rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.