Location: Medford, 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 | $950 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,110 | $241,844 | 0.46% | F |
| 2BR | $1,380 | $300,659 | 0.46% | F |
| 3BR | $1,920 | $411,003 | 0.47% | F |
| 4BR | $2,270 | $512,617 | 0.44% | F |
| 5BR | $2,633 | $585,453 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Grants Pass, OR (ZIP 97526), might have several concerns regarding the viability of renting properties under the Section 8 program. Let's address these concerns directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,250 (for zip code FY 2024) cover the mortgage on a $383,970 home?
The FMR of $1,250 is a crucial figure for determining rental income under the Section 8 program. However, to accurately assess whether it will cover the mortgage, we need to consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage with an average interest rate of around 5%, the monthly payment on a $383,970 home would be approximately $2,060. This means that the FMR of $1,250 would not fully cover the mortgage payment. Landlords would need to factor in additional sources of income or subsidies to ensure profitability.
Objection 2: Is there enough renter demand at 32.3%?
The 32.3% figure represents the percentage of households that are renters. While this indicates a significant portion of the population in Grants Pass, OR, relies on rental housing, it does not provide a complete picture of the demand for Section 8 rentals specifically. The overall rental market demand can be robust, but the demand for affordable housing supported by Section 8 vouchers is another matter. To fully evaluate this objection, we would need more detailed data on the number of Section 8 participants and the availability of units in the area. Nonetheless, the 32.3% rental rate suggests a substantial base of potential tenants.
Objection 3: Will vouchers keep pace with $1,576 market rents?
The market rent of $1,576 is higher than the FMR of $1,250, which could pose a challenge for landlords participating in the Section 8 program. Vouchers are designed to help low-income families afford housing, but they are typically capped at the FMR level. Therefore, landlords might find themselves facing a gap between the voucher amount and the actual market rent. It's important to note that while the FMR sets a limit, landlords can negotiate rents up to the FMR, and some flexibility exists depending on the local housing authority policies. However, the data does not indicate if the voucher amounts are expected to increase to meet the rising market rents.
In conclusion, while Grants Pass, OR, shows promise with a decent rental market share, the skepticism around covering mortgage payments and keeping pace with market rents is valid. Investors should carefully consider their financial models and seek additional support or subsidies to bridge the gap between FMR and market rents.
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.