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 | $1,290 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $404,289 | 0.43% | F |
| 3BR | $2,380 | $433,150 | 0.55% | F |
| 4BR | $2,870 | $538,551 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 97487, located in Veneta, Oregon, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1340, while the Census ACS reports the market rent at $1,456. This represents a gap of $116, which is approximately an 8.67% difference.
In Veneta, where only 24.0% of residents are renters, landlords must carefully consider the implications of accepting housing voucher tenants. The median home value in the area is $436,776, indicating a relatively stable housing market. However, the median income of $65,625 suggests that many potential tenants might rely on assistance programs such as Section 8 to afford housing.
Given that the FMR is less than the market rent, landlords who accept voucher tenants are effectively renting their properties below the open-market rates. This can be seen as a trade-off; while they receive a guaranteed payment from the government, it is lower than what they could potentially earn from a tenant paying the market rate. This scenario makes Veneta a location where landlords must weigh the benefits of consistent rental income against the potential for higher yields from market-rate tenants.
The cost of housing voucher tenants below open-market rates means that landlords are subsidizing the difference between the FMR and the market rent. In Veneta, this subsidy amounts to $116 per month, or roughly $1,392 annually per unit. Landlords should factor this into their investment strategy, considering the broader economic context and the demand for subsidized housing in the area.
To summarize, Veneta's Section 8 landscape presents a clear gap between the FMR and market rents, impacting the financial decisions of landlords and small-portfolio investors. With the FMR being lower, landlords must decide whether the stability of Section 8 payments outweighs the opportunity to achieve higher rental yields through market-rate leases.
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.