Section 8 Fair Market Rent (FMR) for ZIP 97701 - 2027

Investment Score for ZIP 97701

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	$1,390
1 Bedroom	$1,400
2 Bedrooms	$1,830
3 Bedrooms	$2,530
4 Bedrooms	$3,060
5 Bedrooms	$3,550
6 Bedrooms	$3,976
7 Bedrooms	$4,294
8 Bedrooms	$4,509

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
1BR	$1,400	$360,527	0.39%	F
2BR	$1,830	$494,942	0.37%	F
3BR	$2,530	$582,613	0.43%	F
4BR	$3,060	$711,100	0.43%	F
5BR	$3,550	$940,435	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97701 (Bend, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97701 is set by HUD for 2026 as follows: - 0BR: $1370 - 1BR: $1380 - 2BR: $1790 - 3BR: $2490 - 4BR: $3000 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit based on the number of bedrooms. However, it's important to note that the actual rents in the area significantly exceed these FMRs. For instance, the Zillow median price for a 2BR unit is $489,318, which translates to a monthly mortgage payment of approximately $2,280 assuming a 30-year fixed-rate mortgage at 5%. This means that the price-to-FMR ratio for a 2BR unit is 22.8x, indicating that the actual rental market is much higher than the FMR. This creates a significant constraint for voucher holders, who may find it difficult to secure housing within their budget. The FMR for a 2BR unit is only $1790, while the average market rent is likely much higher given the high median home value. Therefore, voucher holders might be limited to finding units that are below market value or in less desirable areas. #### Affordability & Renter Profile ZIP code 97701 has a population of 43,293, with 46.0% of residents being renters. This indicates a substantial demand for rental properties. The occupancy rate of 94.0% suggests that the market is relatively tight, with few vacant units available. Given the median household income of $87,739, the majority of residents can afford market rates, but those relying on Section 8 vouchers would struggle to find affordable housing. For context, the FMR for a 2BR unit represents only 24.5% of the median income. This implies that the typical resident can afford to spend more on rent than what is covered by the voucher program. Consequently, the market is likely to cater more to those who can pay above FMR, leaving a smaller pool of affordable options for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 97701 presents both opportunities and challenges. The high median home value and tight occupancy rate suggest strong demand for rental properties. However, the cash flow potential for investors focusing on Section 8 vouchers is limited due to the low FMR compared to market rates. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a 2BR unit with an FMR of $1790, an investor would need to ensure that the total cost of ownership, including mortgage payments, property taxes, insurance, maintenance, and other expenses, does not exceed this amount. Given the high median home value, it's unlikely that the mortgage payment alone would be covered by the FMR, let alone all other costs. The investment grade for this ZIP would be considered moderate to low for Section 8-focused investors due to the limited number of units that fall within the FMR range and the high competition for these units. Investors looking to maximize returns might find better opportunities in markets where the FMR is closer to the actual rental rates. #### Specific Actionable Insights 1. **Focus on Units Below Market Value**: Investors should target properties that are priced below the market value but still within the FMR range. For example, a 2BR unit priced at around $1790 would be ideal for attracting Section 8 tenants. This could involve purchasing older homes or units in less desirable locations that are undervalued. 2. **Consider Multi-Family Properties**: Given the high median home value and the tight rental market, multi-family properties might offer a better opportunity for cash flow. These properties can spread the cost of ownership across multiple units, potentially allowing the investor to charge slightly higher rents per unit while still remaining within the FMR limits. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of vouchers and the specific needs of voucher holders. This can help investors tailor their offerings to meet the demands of this segment, increasing the likelihood of securing long-term tenants. #### Bottom Line For investors focused on Section 8 vouchers, ZIP code 97701 (Bend, OR) is generally a challenging market due to the high disparity between FMR and actual market rents. The recommendation would be to **Skip** this ZIP unless you can identify units that are significantly below market value and within the FMR range. Alternatively, consider diversifying your investment portfolio to include other types of rental properties that can command higher rents, thus providing better cash flow potential. In summary, the tight rental market and high median home values make it difficult for Section 8 voucher holders to find suitable housing, and investors should carefully evaluate the potential returns before committing to this ZIP.

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.