Section 8 Fair Market Rent (FMR) for ZIP 97405 - 2027

Investment Score for ZIP 97405

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	$1,230
1 Bedroom	$1,250
2 Bedrooms	$1,640
3 Bedrooms	$2,270
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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	$1,250	$348,912	0.36%	F
2BR	$1,640	$401,709	0.41%	F
3BR	$2,270	$524,889	0.43%	F
4BR	$2,740	$638,409	0.43%	F
5BR	$3,178	$737,663	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97405 (Eugene, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97405, as set by HUD for 2026, is $1810 for a two-bedroom unit. This figure represents 22.8% of the median household income of $95,170 in the area. However, the actual rent for a two-bedroom unit in Eugene, according to Zillow, is $389,215, which translates to a monthly mortgage payment of approximately $1,621.60 based on a typical 4.5% interest rate over a 30-year term. The price-to-FMR ratio is 17.9x, indicating that the actual rent far exceeds the FMR. This means that tenants using Section 8 vouchers face significant constraints in finding suitable housing. The voucher amount is insufficient to cover the actual rent for a two-bedroom unit, leaving a substantial gap between what they can afford and what landlords expect. For instance, a landlord would need to accept a rent of $1810 per month for a two-bedroom unit, which is well below the market rate. This creates a challenging environment for both voucher holders and landlords who might prefer higher rental income. #### Affordability & Renter Profile ZIP code 97405 has a population of 46,933, with 29.2% of residents being renters. The occupancy rate stands at 96.0%, suggesting a relatively tight market where most units are occupied. Given the median household income of $95,170, it is clear that the majority of residents have above-average incomes, which contributes to the high demand for housing. The high price-to-FMR ratio indicates that the market is not particularly affordable for low-income renters. With only 22.8% of the median income allocated towards a two-bedroom unit, it is evident that many residents, especially those relying on Section 8 vouchers, struggle to find affordable housing. The tight market conditions mean that there is limited supply of units that fall within the FMR range, making it difficult for voucher holders to secure housing. #### Investor Angle From an investor perspective, the ZIP code 97405 presents a mixed picture. While the median home value is high, the actual rental income at FMR levels is significantly lower than the market rate. To determine if this ZIP code is cash-flow positive at FMR, we must consider the potential rental income versus the mortgage payment. For a two-bedroom unit priced at $389,215, the monthly mortgage payment at a 4.5% interest rate would be around $1,621.60. However, the FMR for such a unit is $1810. If we assume a conservative vacancy rate of 5% and deduct typical property management fees of 10%, the net effective rental income would be: \[ \text{Net Effective Rental Income} = 1810 \times (1 - 0.05) \times (1 - 0.10) = 1810 \times 0.95 \times 0.90 = 1573.95 \] This is slightly below the mortgage payment of $1,621.60, indicating that the investment would likely not be cash-flow positive at FMR levels. Additionally, the high price-to-FMR ratio suggests that the market is not aligned with the needs of low-income renters, making it less attractive for investors focusing solely on Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1380, which is still below the market rate but closer to the actual rental income. This could provide a better balance between affordability and cash flow. 2. **Consider Renovation Projects**: Investors might benefit from purchasing older properties at a discount and renovating them to meet FMR standards. This approach can help reduce the initial investment cost while still providing a livable space for Section 8 tenants. For example, a one-bedroom unit renovated to a value of $250,000 would have a monthly mortgage payment of approximately $1,041.60, leaving room for a profit margin when renting at $1380. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors in ZIP code 97405 is to **Skip** this market. The mismatch between FMR and actual rents makes it challenging to find properties that are both affordable for voucher holders and profitable for investors. Instead, investors might want to explore other areas within Lane County or neighboring regions where the price-to-FMR ratio is more favorable and there is a greater alignment between the needs of low-income renters and the rental market.

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.