Location: Klamath County, OR | Metro: Klamath County, OR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
The Section 8 program in ZIP code 97602 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. However, due to the lack of available data on the current market rent for the area, it's impossible to calculate the exact dollar and percentage gap between the FMR of $1,250 (for metro FY 2026) and the prevailing market rates. Without this critical information, we cannot provide a precise analysis of how this affects landlords and small-portfolio investors.
In the scenario where the FMR exceeds the market rent, which is not confirmed here due to missing data, voucher tenants would typically represent a yield play. This means that landlords could see a higher return on investment because the government pays a rate that is above what the open market would bear. This situation incentivizes property owners to participate in the Section 8 program, as they receive guaranteed rental income at a favorable rate.
Conversely, if the FMR were below the market rent, which again cannot be verified without the current market rent data, landlords might face a different set of challenges. Housing voucher tenants would then pay less than what the market demands, potentially reducing the profitability of properties in ZIP 97602. The cost of maintaining these units could still be at market levels, thus squeezing profit margins unless landlords can find ways to reduce costs or increase other forms of revenue.
The analysis must be anchored in the local context of ZIP 97602, which unfortunately lacks specific percentages of renters, median home values, and median incomes. These figures are essential for understanding the economic landscape and the potential impact of Section 8 on local real estate yields. For a comprehensive assessment, acquiring accurate and up-to-date market rent data is imperative.
Data Sources: FMR data from HUD (2027).
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.