Section 8 Fair Market Rent (FMR) for ZIP 97504 - 2027

Investment Score for ZIP 97504

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,100
1 Bedroom	$1,280
2 Bedrooms	$1,580
3 Bedrooms	$2,190
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,280	$225,506	0.57%	F
2BR	$1,580	$317,701	0.5%	F
3BR	$2,190	$440,830	0.5%	F
4BR	$2,610	$577,465	0.45%	F
5BR	$3,028	$670,645	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97504 (Medford, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Medford, OR (ZIP 97504) in 2026 is set at $1570 for a two-bedroom unit. This figure represents 22.4% of the median household income in the area, which stands at $83,923. To understand how FMR compares to actual rents, we can look at the Zillow median price for a two-bedroom unit, which is $311,911. The price-to-FMR ratio is 16.6x, indicating that the median home value is significantly higher than the rent levels. This suggests that while FMR is designed to reflect what is considered fair rent, it might be lower than what landlords typically charge. For instance, if a landlord charges $1570 for a two-bedroom unit, they would still be below the median rent level but might struggle to cover costs if they are closer to the median home value. Section 8 voucher holders are constrained by the FMR, meaning they can only afford units up to these rates. Therefore, landlords who wish to participate in the Section 8 program must ensure their rents do not exceed these limits. #### Affordability & Renter Profile In ZIP code 97504, 36.3% of the population are renters, indicating a significant portion of the housing market is dedicated to rental properties. With a median household income of $83,923, the affordability of rental units is a critical factor. The FMR for a two-bedroom unit is $1570, which is 22.4% of the median income. This implies that for a household earning the median income, renting a two-bedroom unit would consume a substantial portion of their budget. Given the occupancy rate of 95.2%, it appears that the market is relatively tight, with few vacancies. This high occupancy rate suggests strong demand for rental properties, which could drive up rents beyond the FMR levels. However, the Section 8 program aims to keep rents affordable for low-income households, so there is likely a segment of the market where rents are kept within the FMR guidelines. #### Investor Angle From an investor’s perspective, the key question is whether the FMR levels allow for positive cash flow. Given that the FMR for a two-bedroom unit is $1570, and assuming typical operating expenses and mortgage payments, it is possible to achieve positive cash flow. However, the challenge lies in finding properties that can be rented out at these rates while maintaining profitability. The investment grade of a property in this ZIP code would depend on factors such as location, condition, and amenities. Properties that are well-maintained and located in desirable areas are more likely to attract tenants willing to pay the FMR or slightly above. Conversely, properties in less desirable areas might struggle to command these rents. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high occupancy rate and the significant percentage of renters, investing in two-bedroom units is a strategic choice. These units have an FMR of $1570, which is 22.4% of the median income, making them attractive to both Section 8 voucher holders and other low-income renters. 2. **Consider Location and Condition**: While the overall market is tight, the success of an investment will depend heavily on the property’s location and condition. Properties in prime locations with modern amenities are more likely to be rented at or near FMR levels. 3. **Evaluate Operating Costs**: Ensure that your operating costs, including maintenance, utilities, and insurance, are well-managed. This will help you maintain positive cash flow even when rents are capped at FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 97504 is to **Buy**. The high occupancy rate and significant number of renters make this a promising market. However, investors should focus on properties that can be rented out at or near the FMR levels, particularly two-bedroom units priced at $1570. Ensuring these properties are in good condition and located in desirable areas will maximize the chances of attracting tenants and achieving positive cash flow.

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.