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 | $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 |
|---|---|---|---|---|
| 2BR | $1,380 | $308,532 | 0.45% | F |
| 3BR | $1,920 | $395,077 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP 97536, located in Prospect, OR, within the Medford, OR MSA metro, can serve as an effective cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) for the area and the actual market rent.
The FMR for ZIP 97536 in fiscal year 2024 is set at $1,160. However, the current market rent stands at $867. This means that landlords who participate in the Section 8 program can expect a higher rental income compared to the local market rates, providing a steady and reliable cash flow. Given the median home value of $342,555, the properties in this area offer a good balance between affordability and potential for rental income.
The housing stock in ZIP 97536 consists primarily of well-maintained single-family homes, which aligns with the preferences of many Section 8 tenants. These properties are typically built around 1976, offering a blend of modern amenities and established neighborhoods. The presence of multiple listings with varying price points, such as a $289,000 home and a $410,900 home, indicates a diverse market that can cater to different investment strategies.
While ZIP 97536 does not present strong opportunities for rapid appreciation, given the lack of recent trends indicating significant price increases or short days on market (DOM), it remains a solid choice for generating consistent cash flow. The 14.3% renter share and median income of $58,466 suggest a stable tenant base that can reliably meet rental obligations, further supporting the cash-flow anchor strategy.
In conclusion, ZIP 97536 is best suited as a cash-flow anchor in a Section 8 portfolio, thanks to its favorable FMR-to-market rent ratio and stable housing market conditions.
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.