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 | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $254,298 | 0.45% | F |
| 3BR | $1,600 | $349,874 | 0.46% | F |
| 4BR | $1,920 | $408,169 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 97467, which encompasses Reedsport, Oregon, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,060, while the average market rent reported by the Census Bureau's American Community Survey stands at $802. This means there is a $258 gap, or a 32.2% difference, between what the government considers fair rent and what the local market demands.
In this scenario, where the FMR exceeds the market rent, accepting Section 8 tenants can be a lucrative strategy for increasing rental yields. Landlords who rent their properties for $802 per month would still receive the higher FMR rate of $1,060 from the housing vouchers, effectively boosting their income above the typical market rate. This makes it particularly advantageous in an area where only 27.6% of residents are renters, indicating a smaller pool of potential tenants and thus a greater need for maximizing income from each unit.
Reedsport's median home value of $318,506 and median income of $58,202 further contextualize the economic landscape. These figures suggest that homeownership is relatively affordable compared to other parts of the country, but the median income indicates that many residents might struggle to pay market rents that are higher than the average income can support. Therefore, landlords who offer units at or near the market rent of $802 will find themselves well-positioned to attract both voucher and non-voucher tenants, thereby stabilizing occupancy and cash flow.
However, it is important to note that while the higher FMR payments can increase yields, there are also considerations regarding the management of voucher tenants. The Housing Choice Voucher Program has specific requirements and regulations that landlords must adhere to, which could potentially increase administrative costs or operational challenges. Despite these, the financial benefit of receiving $1,060 in rent for a unit valued at $802 in the open market outweighs the drawbacks, making it a sound investment decision for those willing to navigate the program's stipulations.
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.