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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $506,985 | 0.31% | F |
| 3BR | $2,150 | $622,727 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 97488, Walterville, OR, reveals some interesting insights. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1540 per month. This translates into an annualized rental income of $18,480. Given the median home value of $545,164, the implied gross yield from Section 8 rental income would be approximately 3.4%. This calculation is based on the formula for gross yield: (Annual Rental Income / Property Value) * 100.
However, the market rent for a similar property in the area is listed as N/A, indicating that there might be insufficient data to determine a reliable market rent figure. Assuming that the market rent is higher than the Section 8 FMR, let's consider a hypothetical market rent scenario where a 2-bedroom apartment rents for $1700 per month, which is a common benchmark above the FMR. In this case, the annualized market rent would be $20,400, leading to an implied gross yield of about 3.7%.
To assess the realism of these scenarios, we must consider the local rental market dynamics. With a renter density of 18.3%, it suggests that a significant portion of the population in Walterville, OR, is likely to prefer homeownership over renting. This lower demand for rentals could make the market rent scenario less feasible unless there are other factors driving up rental rates.
The Days on Market (DOM) data being listed as N/A also adds uncertainty. If properties are typically rented quickly, it could indicate strong demand for rental units, potentially supporting higher market rents. Conversely, if DOM is long, it might suggest that the market rent is closer to the Section 8 FMR, or even lower, due to slower rental turnover.
In conclusion, while the market rent scenario offers a slightly better gross yield at 3.7%, the actual performance may be closer to the Section 8 FMR-based yield of 3.4% given the limited renter population and uncertain rental market conditions. Investors should carefully evaluate local trends and adjust their expectations accordingly.
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.