Location: Douglas County, OR | Metro: Douglas County, OR
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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $258,967 | 0.45% | F |
| 3BR | $1,620 | $333,717 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 97435, located in Drain, Oregon, presents a dynamic rental market with specific characteristics that reveal underlying housing pressures. The Fair Market Rent (FMR) set at $1,260 for the fiscal year 2026 indicates a benchmark that landlords should aim to meet or slightly exceed, given it reflects the median rent for a standard-quality rental unit in the area. However, the current market rent stands at $956, according to the Census American Community Survey, suggesting that actual rents are below the FMR. This discrepancy implies either a lag in rent adjustments or a competitive market where landlords offer lower rates to attract tenants.
The median home value in the area is $300,765, which provides insight into the overall economic conditions and property values. While this figure does not directly correlate with rental market dynamics, it can influence the cost of living and the attractiveness of owning versus renting.
A key indicator of market health is the percentage of renters, which in ZIP 97435 is 25.4%. This relatively low proportion of renters compared to homeowners suggests a stable community with long-term residents. However, it also points to potential long-term housing pressure, as a smaller pool of renters might indicate limited availability of rental properties or higher barriers to entry for new renters, such as financial constraints or competition for units.
The absence of data on price-cut share and days on market (DOM) means we cannot quantify the exact level of supply and demand imbalance. Nevertheless, the lower market rent relative to the FMR and the moderate renter share suggest a balanced but slightly tenant-favorable market. Landlords must be aware of these dynamics to adjust their strategies accordingly, ensuring they maintain competitiveness while aiming for rents that reflect the true value of their properties.
In conclusion, ZIP 97435 is a market characterized by a steady rental environment with a hint towards demand possibly being slightly less than supply. This scenario requires landlords to be proactive in maintaining property quality and pricing to stay ahead in a moderately competitive market.
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.