Section 8 Fair Market Rent (FMR) for ZIP 97424 - 2027

Location: Douglas County, OR | Metro: Eugene-Springfield, OR MSA

Investment Score for ZIP 97424

F
Monthly Rent (2BR)
$1,520
Median Price (2BR)
$329,761
1% Rule
0.46%
Annual Yield
5.53%

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$1,110
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

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 $1,160 $294,928 0.39% F
2BR $1,520 $329,761 0.46% F
3BR $2,120 $407,249 0.52% F
4BR $2,550 $481,266 0.53% F
5BR $2,958 $540,682 0.55% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
18,357
Median Household Income
$79,688
Housing Units
7,877
Renter Percentage
30.4%
Occupancy Rate
92.6%
Renter Occupied
2,215

The Fair Market Rent (FMR) for ZIP code 97424, which includes Cottage Grove, Oregon, is set at $1,270 for fiscal year 2024. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay toward rent for a Section 8 voucher holder living in your property. It does not mean you can charge $1,270 for rent; it's simply the reimbursement limit.

In comparison, the local Zillow Observed Rent Index (ZORI) for Cottage Grove is currently at $1,505. This suggests that market rents in your area exceed the FMR, meaning you might have to adjust your expectations if you're relying solely on Section 8 payments.

The renter share in Cottage Grove is 30.4%, indicating a moderate demand for rental properties. This percentage reflects the portion of the population that is renting rather than owning homes, suggesting there is a steady but not overwhelming need for affordable housing.

If you're looking to acquire a new rental property, the median home value in Cottage Grove is approximately $395,833. This is the typical price range you should expect when purchasing a home to convert into a rental unit. Keep in mind that this doesn't account for renovation costs or other expenses associated with preparing a property for Section 8 tenants.

Before committing to a Section 8 rental, it's crucial to verify that your property meets all the necessary inspection criteria. HUD requires that all units participating in the Section 8 program pass a thorough inspection to ensure they meet minimum housing quality standards. Failure to comply could result in non-payment or removal from the program.

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.