Location: Eugene-Springfield, OR | Metro: Eugene-Springfield, OR MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 97412 does not work in favor of landlords when comparing Federal Market Rent (FMR) to the actual market conditions. The FMR for the area in fiscal year 2024 is set at $1300, which is significantly higher than the market rent reported by the Census ACS at $1,047. This discrepancy suggests that landlords might find it challenging to charge the FMR without facing resistance from tenants who can afford only the lower market rate.
Acquisition in ZIP 97412 is moderately affordable, given the median home value of $402,700. However, the lack of data on days on market (DOM) and the percentage of homes that required a price cut indicates a need for caution. Without these metrics, it's difficult to gauge the current market dynamics and the ease of selling a property if needed. Landlords should be prepared for potential fluctuations in the housing market and consider alternative investment strategies if necessary.
Tenant demand in the area is relatively low. With a population of 744, only 13.8% are renters, suggesting a limited pool of potential tenants. This low renter share could make it harder for landlords to fill vacancies quickly and maintain steady cash flow. Additionally, the small number of residents means fewer overall rental opportunities, which could impact the long-term viability of rental investments in this ZIP code.
In summary, while the median home value makes acquisition feasible, the mismatch between FMR and market rent, along with the low tenant demand, presents significant challenges for landlords and small-portfolio investors. The investment potential is diminished by the high risk of vacancy and the difficulty in achieving desired rental income levels. Caution is advised before committing to rental properties in ZIP 97412.
Data Sources: FMR data from HUD (2027). 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.