Section 8 Fair Market Rent (FMR) for ZIP 97402 - 2027

Investment Score for ZIP 97402

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	$1,180
1 Bedroom	$1,200
2 Bedrooms	$1,570
3 Bedrooms	$2,170
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

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	$1,200	$285,763	0.42%	F
2BR	$1,570	$338,910	0.46%	F
3BR	$2,170	$407,217	0.53%	F
4BR	$2,620	$472,019	0.56%	F
5BR	$3,039	$519,590	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97402 (Eugene, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 97402 in Eugene, Oregon, are set at $1710 for a two-bedroom unit in 2026. This amount represents 35.6% of the median household income of $57,658. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom rental property is $330,733, which translates to a monthly rent of approximately $2756 based on a typical mortgage payment formula. The price-to-FMR ratio is 16.1x, indicating that the actual market rents are far above the FMR levels. This means that tenants using Section 8 vouchers face significant constraints. They can only afford units priced at or below the FMR, which is much lower than the average market rate. For example, a tenant with a voucher for a two-bedroom unit would be limited to paying $1710 per month, while the market rate is nearly $2756. This gap makes it challenging for voucher holders to find suitable housing in the area. #### Affordability & Renter Profile With 49.3% of the population renting, the demand for rental properties is substantial. The occupancy rate of 95.4% suggests that the market is relatively tight, with few vacant units available. Given the median household income of $57,658, the cost of living is a significant concern for many residents. The high price-to-FMR ratio indicates that the rental market is not particularly affordable for low-income households. The profile of renters in 97402 likely includes a mix of young professionals, students, and families. With a large portion of the population renting, there is a strong need for affordable housing options. However, the current market dynamics make it difficult for those relying solely on Section 8 vouchers to secure housing without assistance from landlords willing to accept lower rents. #### Investor Angle From an investor perspective, the ZIP code 97402 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1710, but the actual market rent is closer to $2756. This discrepancy means that investors who purchase properties at the median market price will struggle to achieve positive cash flow if they must rent at FMR levels. To determine the investment grade, we need to consider the potential returns and risks. If an investor buys a two-bedroom property at the median price of $330,733 and rents it out at the FMR of $1710, the annual rent would be $20,520. Assuming a conservative estimate of 1% property management fees and 1% maintenance costs, the net annual income would be around $18,390. This results in a cash-on-cash return of about 5.56%, which is relatively low compared to other investment opportunities. Given the tight market and high occupancy rates, the risk of vacancy is minimal. However, the challenge lies in attracting tenants who can pay the market rent or finding landlords willing to accept lower rents due to the voucher program. The investment grade would be considered moderate to low, given the limited cash flow potential at FMR levels. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the median market rate. For instance, purchasing a two-bedroom unit for $250,000 instead of $330,733 could increase the cash-on-cash return to around 7.24%. This would make the investment more attractive and feasible for Section 8 tenants. 2. **Consider Multi-Family Units**: Given the higher FMRs for larger units, multi-family properties might offer better cash flow potential. A four-bedroom unit with an FMR of $2870 would provide a higher monthly rental income compared to a two-bedroom unit. Additionally, multi-family units often have economies of scale in terms of maintenance and management costs. 3. **Negotiate with Landlords**: For investors who already own properties in the area, negotiating with landlords to accept slightly higher rents than the FMR could help bridge the affordability gap. This approach requires careful consideration of local regulations and the willingness of tenants to contribute additional funds towards rent. #### Bottom Line For Section 8-focused investors, the ZIP code 97402 presents a challenging environment due to the high price-to-FMR ratio and limited cash flow potential at FMR levels. The recommendation is to **Skip** this ZIP code unless you can acquire properties at significantly lower prices or are willing to manage multi-family units where the higher FMRs for larger units can improve cash flow. If you do decide to invest, ensure that your acquisition strategy targets properties priced below the median market rate to maximize returns. Additionally, consider the broader implications of the tight rental market and the potential for increased competition among landlords willing to accept Section 8 vouchers.

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.