Location: Grants Pass, OR | Metro: Grants Pass, 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 | $980 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $260,146 | 0.54% | F |
| 3BR | $1,950 | $339,040 | 0.58% | F |
U.S. Census Bureau data (2024)
Cave Junction, OR, located in ZIP code 97523, is a small town with a population of 7,172 residents. The town has a relatively low percentage of renters at 20.8%, indicating a predominantly owner-occupied community. The median household income in the area is $47,589, which suggests a middle-class demographic. Additionally, the median home value stands at $295,497, reflecting a modest residential market.
When it comes to the rental economics of ZIP 97523, the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for fiscal year 2024 is $1,320. This figure is slightly below the Census ACS reported market rent of $1,372, indicating a small premium for non-voucher tenants. For Section 8 investors, the gap between the FMR and market rent is a critical consideration. It means that properties rented through the voucher program will be slightly less profitable compared to those rented at market rates, but the difference is minimal.
The question then becomes whether ZIP 97523 suits a hands-off voucher operator or a hands-on value-add buyer. Given the modest income levels and the slight disparity between FMR and market rent, a hands-off voucher operator can find success here. The demand for affordable housing is present, especially among the 20.8% of renters who might benefit from the voucher system. However, for a hands-on value-add buyer, there may be limited opportunities to significantly increase property values due to the town's small size and lower economic activity. In conclusion, ZIP 97523 offers a stable environment for hands-off operators looking to capitalize on the Section 8 program without the complexity of actively managing property appreciation.
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.