Location: Medford, OR | Metro: Medford, 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 | $1,000 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $276,315 | 0.52% | F |
| 3BR | $1,980 | $413,761 | 0.48% | F |
| 4BR | $2,360 | $476,248 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP 97535, located in Phoenix, OR, within the Medford, OR MSA metro area, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1260, which exceeds the local market rent of $1216 by $44. This positive spread ensures that landlords can collect higher rents through Section 8 vouchers compared to the prevailing market rates, providing a reliable source of income.
The median home value in ZIP 97535 stands at $401,257. While this figure is relatively high, it does not significantly impact the cash-flow potential of rental properties due to the lower median income of $66,052. The income level suggests that many residents rely on Section 8 vouchers to afford housing, making the ZIP code an ideal location for securing long-term tenants who are financially supported by the government.
ZIP 97535 is not an appreciation play because there is no data indicating a significant increase in property values or a decrease in days on market (DOM) for homes. Without such trends, the focus should remain on stable cash flows rather than speculative gains in property value.
Nor is this ZIP code primarily a diversifier, despite having a 28.0% renter share. The high percentage of renters indicates a strong demand for rentals, but the primary appeal here is the cash flow generated by the favorable FMR-to-market rent ratio. Diversification benefits would be secondary to the primary advantage of consistent and above-market rental income.
In conclusion, ZIP 97535 is best suited as a cash-flow anchor in a Section 8 portfolio. The guaranteed rent through vouchers, combined with the positive spread over market rates, provides a solid financial foundation for landlords and small-portfolio investors seeking steady returns.
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.