Location: Eugene-Springfield, OR | Metro: Albany, 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 | $1,270 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,140 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,550 | $324,336 | 0.48% | F |
| 3BR | $2,140 | $404,483 | 0.53% | F |
| 4BR | $2,550 | $498,271 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,440 for ZIP 97446 in Harrisburg, OR, for fiscal year 2024 will sufficiently cover the mortgage on a home priced at $409,712. To address this concern, let's consider the current mortgage rates. According to recent data, the average 30-year fixed-rate mortgage is around 6.5%. A mortgage payment on a $409,712 home with a 20% down payment would be approximately $2,200 per month, which exceeds the FMR. However, this figure does not include property taxes and insurance, which can add another $300-$400 per month. Therefore, it's important to note that the FMR alone would not cover the total monthly cost of owning such a home.
The second objection is regarding the rental demand in ZIP 97446, which stands at 17.2%. This percentage suggests that roughly one out of every six households in the area are renters. While this figure is relatively low, it's crucial to understand that the rental market can still be viable if the demand is steady and the vacancy rates are low. Additionally, the rental market may have room for growth, particularly if the area continues to develop and attract new residents.
The final objection concerns whether Housing Choice Vouchers (Section 8) will keep pace with market rents of $1,198. The voucher amount is tied to the FMR, which is currently set at $1,440. If the market rents continue to rise, the gap between the voucher amount and the actual rent could widen. However, the voucher program aims to adjust the payment standards periodically to reflect changes in the housing market. It's also worth noting that voucher holders often face additional requirements, such as contributing a portion of their income towards rent, which can help bridge the gap.
In summary, while the FMR may not fully cover the mortgage costs on a $409,712 home, the rental market in ZIP 97446 remains viable. The current rental demand and the potential for growth, combined with the periodic adjustments in voucher amounts, suggest that the rental market can support Section 8 properties. However, investors should carefully consider these factors and consult with local real estate professionals to make informed 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.