Location: Klamath County, OR | Metro: Klamath County, OR
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 | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $191,267 | 0.48% | F |
| 2BR | $1,180 | $233,662 | 0.51% | F |
| 3BR | $1,640 | $331,073 | 0.5% | F |
| 4BR | $1,980 | $417,134 | 0.47% | F |
| 5BR | $2,297 | $466,892 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 97603, which encompasses Klamath Falls, Oregon, in Klamath County, operate under specific financial guidelines. For fiscal year 2026, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,310. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward the rent for a unit of this size.
Comparatively, the local market rent for a two-bedroom apartment, as measured by ZORI (Zillow Observed Rent Index), stands at $1,448. This indicates that landlords who participate in the Section 8 program may face a slight shortfall between the market rent and the SAFMR reimbursement rate.
A landlord's actual reimbursement from a voucher depends on several factors, including the tenant's portion of the rent and any utility allowances. Typically, tenants contribute 30% of their adjusted income toward rent. If we assume an average adjusted income for a tenant in this area, the contribution would be approximately $393 based on the SAFMR of $1,310. This calculation varies depending on the individual tenant's income but gives a general idea of the tenant's payment.
In addition to the rent contribution, there are utility allowances that can affect the total reimbursement. Utility allowances are determined by the U.S. Department of Housing and Urban Development (HUD) and vary by region. For ZIP 97603, the allowance for utilities might add another $300 to the reimbursement, bringing the total potential reimbursement to around $1,613.
However, it is important to note that the SAFMR applies specifically to this ZIP code, meaning the reimbursement rate is tailored to the local rental market conditions. This specificity aims to ensure that the rent is affordable for low-income families while also reflecting the actual cost of renting in the area.
To summarize, given the SAFMR of $1,310 and assuming a 30% tenant contribution of $393, along with utility allowances of about $300, the total reimbursement to a landlord could be approximately $1,613. Given the local market rent of $1,448, this leaves a surplus of $165 for landlords participating in the Section 8 program for a two-bedroom unit in ZIP 97603. This surplus can help offset the costs associated with maintaining and managing rental properties.
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.