Section 8 Fair Market Rent (FMR) for ZIP 97401 - 2027

Investment Score for ZIP 97401

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,260
2 Bedrooms	$1,650
3 Bedrooms	$2,280
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,260	$292,506	0.43%	F
2BR	$1,650	$397,164	0.42%	F
3BR	$2,280	$516,294	0.44%	F
4BR	$2,760	$628,419	0.44%	F
5BR	$3,202	$698,277	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97401 (Eugene, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97401, as determined by HUD for 2026, is set at $1820 for a two-bedroom unit. This figure represents 42.0% of the median household income in the area, which stands at $52,022. However, it is important to note that the actual rental prices in the market significantly exceed these FMRs. According to Zillow, the median price for a two-bedroom unit in 97401 is $387,785, translating to a monthly rent of approximately $1,615 based on typical mortgage payments and property management costs. The price-to-FMR ratio for a two-bedroom unit is 17.8x, indicating that actual market rents are much higher than the FMRs set by HUD. This discrepancy creates significant constraints for voucher holders. They may struggle to find units that accept their vouchers, as landlords often prefer market-rate tenants who can pay more. Additionally, the limited budget of voucher holders means they must frequently settle for lower-quality housing options or face long wait times for available units that fall within the FMR range. #### Affordability & Renter Profile ZIP code 97401 has a high renter population percentage of 70.9%, suggesting that the majority of residents are renters rather than homeowners. This high concentration of renters indicates a strong demand for rental properties in the area. The occupancy rate of 94.6% further supports this notion, showing that most available units are already occupied, leaving a tight market for new renters. Given the median household income of $52,022, affordability is a critical issue for many residents. With 42.0% of the median income allocated towards a two-bedroom unit, it leaves little room for other expenses such as utilities, food, and healthcare. This tight budget constraint makes the area particularly reliant on affordable housing solutions like Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 97401 presents a challenging scenario. While the FMRs provide a baseline for what voucher holders can afford, the actual market rents far exceed these figures. For instance, a two-bedroom unit with a Zillow median price of $387,785 would likely command a market rent of around $1,615 per month, which is significantly above the FMR of $1820. However, the high renter population and occupancy rates suggest that there is a robust demand for rental properties. Despite this, the investment grade for properties in this ZIP code is relatively low due to the mismatch between FMRs and market rents. Investors who focus solely on Section 8 vouchers will find it difficult to achieve positive cash flow, given the high costs associated with maintaining and managing properties in a competitive market. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should prioritize acquiring and renovating units that are closer to the FMR range. For example, a two-bedroom unit priced at $1820 per month could be more attractive to voucher holders and potentially lead to higher occupancy rates. This strategy would involve identifying older properties that can be improved to meet modern standards without drastically increasing the rental cost. 2. **Consider Mixed-Income Developments**: Given the high market rents, investors might consider developing mixed-income properties where some units are rented at market rates and others are reserved for voucher holders. This approach can help balance the financial burden and ensure steady cash flow while still providing affordable housing options. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can be beneficial. They can provide insights into the availability of vouchers and the needs of the community. Additionally, participating in programs that offer incentives for accepting Section 8 vouchers can mitigate some of the financial risks associated with renting below market rates. #### Bottom Line For Section 8-focused investors, the ZIP code 97401 presents a challenging environment due to the significant gap between FMRs and actual market rents. The high renter population and occupancy rates indicate strong demand, but the mismatch in pricing makes achieving positive cash flow difficult. Therefore, the recommendation is to **skip** this ZIP code unless investors can secure properties at or near the FMR range or are willing to engage in mixed-income developments. If the goal is to invest purely in Section 8 properties, the current market conditions in 97401 do not favor a positive financial outcome.

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.