Section 8 Fair Market Rent (FMR) for ZIP 97633 - 2027

Location: Klamath County, OR | Metro: Klamath County, OR

Investment Score for ZIP 97633

Monthly Rent (2BR)

$1,130

Median Price (2BR)

$191,961

1% Rule

0.59%

Annual Yield

7.06%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$780
1 Bedroom	$870
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,130	$191,961	0.59%	F
3BR	$1,570	$303,151	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,246

Median Household Income

$62,019

Housing Units

494

Renter Percentage

31.8%

Occupancy Rate

95.5%

Renter Occupied

150

The economics of Section 8 housing in ZIP code 97633, which encompasses Klamath Falls, Oregon, within Klamath County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,110. However, the local market rent for a similar unit is significantly lower, averaging around $670 according to the Census ACS data.

When a landlord participates in the Section 8 program, the payment structure is designed to cover most of the rent but not all. Here's a breakdown of how it works:

The landlord receives a subsidy directly from the housing authority, which covers the difference between the SAFMR and the tenant's portion of the rent.
The tenant is responsible for paying approximately 30% of their adjusted income towards rent. This amount can vary slightly based on individual circumstances but is generally around $333 for a two-bedroom unit in this area.
In addition to the rent subsidy, there is also an allowance for utilities. This varies by region and household size but is typically around $200-$300 per month for a two-bedroom unit.

To illustrate, if the tenant's portion is $333 and the utility allowance is $250, the total subsidy the landlord would receive is $1,110 minus the tenant's $333 contribution, equaling $777. Adding the utility allowance brings the total monthly reimbursement to about $1,027.

This means that landlords in ZIP 97633 participating in the Section 8 program will see a reimbursement that exceeds the local market rent by about $357 per month. This surplus provides a buffer against potential shortfalls and ensures that landlords are adequately compensated for renting to eligible tenants under the Section 8 program.

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.