Location: Lincoln County, 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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $369,175 | 0.32% | F |
| 2BR | $1,570 | $515,969 | 0.3% | F |
| 3BR | $2,160 | $668,532 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 97498, Yachats, Oregon, provides valuable insights into potential investment returns under different rental scenarios. For a two-bedroom unit, the Fair Market Rent (FMR) for FY 2024 is set at $1560 per month, while the market rent based on Census ACS data stands at $1,076 per month.
To calculate the gross yield, we first annualize these figures. The annualized FMR for a two-bedroom unit in Yachats would be $18,720 ($1560 x 12 months), whereas the annualized market rent would be $12,912 ($1,076 x 12 months).
The median home value in Yachats is $527,333. Using this figure, the implied gross yield when considering the FMR scenario is approximately 3.55%. This is calculated by dividing the annualized FMR ($18,720) by the median home value ($527,333). In contrast, the implied gross yield based on the market rent scenario is roughly 2.45%, derived from dividing the annualized market rent ($12,912) by the median home value ($527,333).
Given that only 23.5% of residents in Yachats are renters, it's important to consider the market dynamics. The N/A-day DOM (Days on Market) suggests that there might be limited data available regarding how quickly properties are rented out, which could indicate a slower rental market. However, this does not necessarily diminish the attractiveness of the FMR scenario, as the government-backed Section 8 program ensures steady income, albeit with strict regulations.
In conclusion, the gross yield from the FMR scenario is significantly higher at 3.55% compared to the 2.45% from the market rent scenario. While the higher renter density would typically favor market rents, the guaranteed income and stability offered by the Section 8 program make the FMR scenario more appealing for long-term investment in Yachats. Investors should weigh these factors carefully and consider their risk tolerance and investment goals before making a decision.
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.