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 | $1,110 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $473,621 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 97434 might question whether the Fair Market Rent (FMR) of $1220 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $412,534. This concern is valid; however, it's important to note that FMR represents the average rent for a two-bedroom apartment, which is typically lower than the mortgage payment on a single-family home. To accurately assess the mortgage coverage, one would need to know the interest rate and loan terms, but generally, FMR is a guideline for rental rates, not mortgage payments.
The investor might also wonder if the rental market in ZIP 97434 is robust enough given that only 19.1% of the population are renters. While this percentage is relatively low, it still indicates a significant number of potential tenants. The demand for rentals can be influenced by factors such as job availability, housing costs, and demographic trends, which are not fully captured by the percentage alone. For instance, even in areas with a smaller rental market share, there can be strong demand due to limited housing stock or high property values that make homeownership unattainable for many.
A final objection could be whether the Housing Choice Voucher Program, which pays an average of $691 towards market rents, will keep pace with the increasing market rents. The data shows a discrepancy between the voucher amount and the market rent, suggesting that voucher holders might struggle to find suitable housing without additional financial assistance. However, it's worth noting that voucher amounts can adjust annually based on HUD guidelines and local market conditions. Landlords who accept vouchers should also consider the stability and reliability of voucher payments compared to other sources of rental income.
In conclusion, while ZIP 97434 presents some challenges in terms of rental market size and voucher adequacy, the data does not provide a complete picture. Additional research into local economic conditions, vacancy rates, and the trend of voucher adjustments over time would offer a clearer understanding of the investment viability. The FMR figure serves as a useful benchmark for setting rental prices but should not be directly equated with mortgage coverage capabilities.
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.