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 | $256,753 | 0.45% | F |
| 3BR | $1,600 | $314,427 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 97469 (Riddle, OR) reveals a challenging investment scenario for landlords and small-portfolio investors. To start, let's annualize the figures provided: the Fair Market Rent (FMR) for a 2-bedroom apartment is $1,120 per month, which translates to an annual rental income of $13,440. The market rent, based on Census ACS data, is lower at $850 per month, equating to an annual rental income of $10,200.
To calculate the gross yield, we use the median home value of $280,669. For the FMR scenario, the gross yield is approximately 4.8% ($13,440 / $280,669), while for the market rent scenario, it drops to about 3.6% ($10,200 / $280,669).
The FMR gross yield of 4.8% suggests a higher potential return, but this must be weighed against the realities of the local rental market. With only 20.2% of residents being renters, there is limited demand for rental properties. This low renter density makes it difficult to achieve consistent occupancy rates necessary to maintain the FMR gross yield. Furthermore, the N/A-day Days on Market (DOM) indicates incomplete data, which could point to either a very stable or volatile rental market. Given these factors, achieving the higher FMR gross yield may be unrealistic for most investors.
In contrast, the market rent gross yield of 3.6% aligns more closely with the actual rental conditions in Riddle, OR. Although this figure represents a lower return, it is likely more attainable considering the lower renter density and the absence of clear DOM data. Landlords and small-portfolio investors should focus on securing stable rental income rather than chasing potentially unattainable higher yields.
In conclusion, while the FMR scenario offers a gross yield of 4.8%, the more realistic market rent scenario provides a gross yield of 3.6%. The latter reflects the true rental dynamics in Riddle, OR, and should be considered the baseline for investment decisions in this area.
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.