Location: Eugene-Springfield, OR | Metro: Eugene-Springfield, OR 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 | $1,480 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $460,673 | 0.43% | F |
| 3BR | $2,740 | $576,842 | 0.48% | F |
| 4BR | $3,310 | $774,417 | 0.43% | F |
| 5BR | $3,840 | $957,389 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 97408, located in Eugene, Oregon, Lane County, operate based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1740 for fiscal year 2024. This SAFMR specifically applies to this ZIP code, ensuring that the rental assistance reflects the local market conditions accurately.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), currently stand at $1974 for a similar two-bedroom unit. When a landlord participates in the Section 8 program, they receive payment from the Housing Choice Voucher Program, which covers the difference between the tenant's contribution and the SAFMR.
A tenant's portion is generally determined by their income, with a common rule being that they pay 30% of their adjusted monthly income towards rent. For example, if a tenant's monthly income is $2,000, their portion would be $600. The voucher then covers the remainder up to the SAFMR, which in this case is $1740. Therefore, the voucher would cover $1140 of the rent.
In addition to the base rent, the voucher also includes utility allowances. These vary but typically range from $200 to $300 per month for a two-bedroom unit. Thus, the total reimbursement a landlord might receive could be around $1340 to $1440 per month, combining the base rent and utility allowance.
This leaves a gap between the local market rent and the reimbursement amount. In ZIP 97408, landlords would see a shortfall of approximately $534 to $634 per month when renting a two-bedroom unit to a Section 8 tenant. This gap must be considered by landlords and small-portfolio investors when deciding whether to participate in the Section 8 program in this specific ZIP code.
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.