Location: Lake County, OR | Metro: Lake County, OR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 97620 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,150. However, the current market rent data is unavailable, which complicates direct comparison. To provide a clear analysis, we must consider the broader context of the area, including the fact that 16.0% of residents are renters, and the median household income is $83,750.
In the absence of current market rent data, if we assume the FMR is higher than the market rent, this would suggest an opportunity for landlords and small-portfolio investors to leverage the Section 8 program for higher yields. The gap between the FMR and lower market rents means that landlords can receive a higher payment from the government through Section 8 vouchers than they might from non-subsidized tenants. This scenario turns the investment into a yield play, where the difference between the FMR and the actual market rate translates directly into additional income for the landlord.
Conversely, if the FMR is less than the market rent, landlords accepting Section 8 tenants are effectively subsidizing housing. This cost comes from renting units below the open-market rates, which could be significantly higher depending on the local real estate market. While the exact market rent is not available, the median income figure suggests that the potential market rent could be higher given the average income levels. Landlords should carefully assess their costs and desired returns before deciding to participate in the Section 8 program under such conditions.
The median home value data is also not available, which limits our ability to fully understand the property values in the area. However, with a median income of $83,750, it's reasonable to infer that the cost of living and rental prices could be competitive, especially considering the percentage of renters in the community.
To summarize, the viability of the Section 8 program in ZIP 97620 depends critically on whether the FMR exceeds or falls short of the actual market rent. In the former case, it represents a yield play; in the latter, it incurs a cost. Given the incomplete data, landlords and investors must proceed with caution and seek out current market rent figures to make informed decisions.
Data Sources: FMR data from HUD (2027). 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.