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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $432,583 | 0.36% | F |
| 3BR | $2,150 | $571,884 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 97413, Blue River, OR, is defined by the gap between the Fair Market Rent (FMR) and the actual market rent. For FY 2024, the FMR for a two-bedroom apartment in ZIP 97413 is $1,220. In contrast, the market rent for a two-bedroom apartment is $1,390, as per recent data. This means there is a $170 gap between the FMR and the market rent, representing approximately a 14% difference.
In Blue River, where 16.9% of residents are renters, and the median home value stands at $436,122 with a median income of $63,558, landlords must be aware of the implications of this gap. When the FMR is lower than the market rent, as it is here, landlords may find themselves renting units below open-market rates. This scenario can result in reduced cash flow and lower yields for landlords and small-portfolio investors.
The cost of housing voucher tenants below open-market rates can be significant. Landlords might need to adjust their investment strategies to account for the lower returns. Additionally, landlords should consider the stability and reliability of Section 8 tenants, who often have a strong track record of paying rent on time due to government subsidies. However, the financial impact cannot be ignored, especially when the market rent exceeds the FMR by such a margin.
To summarize, in ZIP 97413, landlords face a $170 shortfall between the FMR and the market rent for a two-bedroom unit. This discrepancy translates into a 14% reduction in potential rental income compared to open-market rates. While Section 8 tenants provide stability, the lower yield must be factored into any investment decisions.
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.