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 | $1,210 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $369,235 | 0.47% | F |
| 3BR | $2,400 | $446,860 | 0.54% | F |
| 4BR | $2,860 | $570,156 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 97540, located in Talent, Oregon, presents a unique scenario when it comes to housing affordability for renters. The median income in this area stands at $65,762, while the market rate for rent, measured by ZORI (Zillow Observed Rent Index), is $1,573 per month. This places a significant financial burden on households, considering that the recommended housing expenditure is typically around 30% of one’s income.
To put this into perspective, a household earning the median income would ideally spend no more than $1,642.80 monthly on rent. However, the actual market rate of $1,573 is close to this threshold, leaving little room for other essential expenses such as food, healthcare, and transportation.
Comparatively, the Housing Choice Voucher program, which is a federal initiative designed to help low-income families afford housing, offers a payment standard based on the Fair Market Rent (FMR). For ZIP 97540 in fiscal year 2024, the FMR is set at $1,470. This is slightly below the market rate but still represents a substantial portion of the median income. A household would need to contribute an additional $103 out-of-pocket to meet the market rate, assuming the voucher covers the rest.
In Talent, 44.0% of the 8,323 residents are renters, indicating a notable demand for rental properties. Given the tight budget constraints faced by many renters, the difference between the market rate and the voucher payment standard becomes a critical factor in their decision-making process. Landlords must consider this affordability gap when strategizing their rental offerings.
The takeaway for landlords is clear: focusing on both voucher and cash-pay strategies can maximize occupancy rates and revenue stability. While voucher tenants provide a steady income source through government subsidies, cash-paying tenants might offer higher rents but come with the risk of higher vacancy rates due to financial instability. Balancing the portfolio with a mix of both can mitigate risks and ensure a consistent cash flow.
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.