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 | $296,726 | 0.58% | F |
| 3BR | $2,360 | $363,762 | 0.65% | D |
| 4BR | $2,800 | $420,260 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 97396, Willamina, Oregon, reveals a significant gap between the federal market rent (FMR) and the actual market rent, impacting potential investment yields.
Based on the Fiscal Year 2024 data, the annualized FMR for a two-bedroom apartment in Willamina is $1660. This translates into an implied gross yield of approximately 0.46% when applied against the median home value of $356,941. The calculation is straightforward: ($1660 * 12) / $356,941 = 0.46%. This scenario suggests that if landlords were to rely solely on Section 8 rental assistance, they would see a very low return on investment.
In contrast, the Census ACS reports the average market rent for a two-bedroom unit at $1,149 per month. Annualizing this figure gives us $13,788, which results in a much higher implied gross yield of about 3.86%. The calculation here is: ($1,149 * 12) / $356,941 = 3.86%. This yield is significantly more attractive to investors looking for better returns on their property investments.
The 25.0% renter density in Willamina indicates a moderate level of demand for rental properties, but it does not provide enough context to determine the exact vacancy rate or days on market (DOM). However, the N/A-day DOM suggests either insufficient data or a stable rental market where vacancies are filled quickly, implying strong tenant demand.
Given these factors, the market rent scenario is more realistic for most investors. While Section 8 can be a reliable source of tenants, the lower rent paid under this program means a significantly reduced gross yield. Most landlords and small-portfolio investors would likely prefer to achieve the higher yield offered by the market rent, especially considering the relatively low vacancy risk indicated by the renter density and the quick fill rates suggested by the N/A-day DOM.
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.