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 | $970 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $332,654 | 0.42% | F |
| 3BR | $1,920 | $438,275 | 0.44% | F |
| 4BR | $2,300 | $586,187 | 0.39% | F |
U.S. Census Bureau data (2024)
The renter's landscape in ZIP 97539, Shady Cove, Oregon, reveals a stark contrast between the median income and the housing costs. The median household income stands at $51,875, which translates to an average monthly income of approximately $4,323. Given the market rate for rent at $1,071, this represents roughly 25% of the monthly income. This percentage is within the general guideline that housing should not exceed 30% of one’s income, making it somewhat affordable for the average renter.
However, the Housing Choice Voucher program, commonly known as Section 8, sets a Fair Market Rent (FMR) standard at $1,630 for the fiscal year 2024. This amount is significantly higher than the current market rate, indicating a potential opportunity for landlords who accept vouchers. A household earning the median income would find it challenging to pay the FMR without assistance, as it would consume nearly 47% of their monthly income. This suggests that the voucher system could be a lifeline for many residents in Shady Cove.
With 32.3% of the population being renters and a total population of 3,369, the competition among landlords is moderate. The affordability gap means that landlords who offer competitive pricing close to the market rate might attract a larger pool of tenants willing to pay out-of-pocket. However, those who opt to participate in the voucher program could benefit from a steady stream of rental income guaranteed by the government, albeit with some administrative overhead.
The takeaway for landlords is clear: while the market rate offers immediate affordability for tenants, the FMR through vouchers provides a higher rental income that could better match the cost of maintaining properties. Landlords should consider the balance between accepting vouchers, which ensures a reliable income but requires compliance with federal guidelines, and cash-paying tenants, who provide flexibility but may struggle to meet rising costs. In Shady Cove, the choice between voucher and cash-pay strategies will depend on individual property management goals and tenant preferences.
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.