Location: Grants Pass, 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 | $1,160 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,340 | $481,778 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 97544 provides a detailed look at the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a two-bedroom apartment set at $1800 annually and the market rent at $1,540 per month, we can derive the gross yield for both scenarios.
First, annualizing the FMR of $1800, the total annual rental income would be $1800 * 12 = $21,600. Against the median home value of $439,997, this translates into an implied gross yield of approximately 4.9%. This calculation is based on the assumption that the property value accurately reflects the cost of acquisition or investment.
Second, using the market rent of $1,540 per month, the total annual rental income would be $1,540 * 12 = $18,480. When compared to the median home value, this scenario implies a gross yield of roughly 4.2%. The difference between these two yields is significant, with the FMR scenario offering a higher return on investment.
Given the 12.6% renter density in ZIP 97544, it is important to note that the number of days on market (DOM) is listed as N/A. This suggests either a very strong rental market where properties are leased quickly, or there might be limited data available regarding the speed at which properties are rented out. Regardless, the lower renter density indicates that a significant portion of the population owns their homes, potentially affecting the demand for rental properties.
In terms of realism, the FMR scenario appears more favorable for landlords participating in the Section 8 program. However, the market rent scenario reflects the actual rental rates in the area, making it a more grounded estimate for general rental investment. For landlords considering Section 8 participation, the 4.9% gross yield offers a better financial return compared to the typical market rent scenario, which implies a gross yield of 4.2%.
It's crucial for investors to understand that while the FMR-based gross yield is higher, the actual net operating income (NOI) will depend on factors such as property management costs, vacancy rates, and maintenance expenses. Therefore, investors should use these gross yield figures as a starting point for their own calculations.
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.