Section 8 Fair Market Rent (FMR) for ZIP 97702 - 2027

Investment Score for ZIP 97702

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	$1,560
1 Bedroom	$1,570
2 Bedrooms	$2,050
3 Bedrooms	$2,840
4 Bedrooms	$3,430
5 Bedrooms	$3,979
6 Bedrooms	$4,456
7 Bedrooms	$4,812
8 Bedrooms	$5,053

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	$1,570	$266,289	0.59%	F
2BR	$2,050	$566,070	0.36%	F
3BR	$2,840	$657,134	0.43%	F
4BR	$3,430	$805,561	0.43%	F
5BR	$3,979	$1,011,505	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97702 (Bend, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 97702 in Bend, Oregon, indicate that the rental market is quite expensive relative to the federal guidelines. For a two-bedroom unit, the FMR is set at $1910 per month, which represents 23.8% of the median household income of $96,112. However, the actual rent for a two-bedroom unit is significantly higher, with the Zillow median price being $561,293. This translates to a price-to-FMR ratio of 24.5 times, meaning that the actual market rent is approximately 24.5 times the FMR. This high ratio creates significant constraints for voucher holders. The maximum allowable rent under the Section 8 program is capped at the FMR, so tenants with vouchers would find it challenging to secure housing in this market. They might have to look outside the ZIP code or accept lower-quality units that fit within their budget. #### Affordability & Renter Profile The population of ZIP 97702 is 54,657, with 28.5% of residents being renters. Given the occupancy rate of 92.7%, it suggests that the market is relatively tight, with few vacancies available. The high median household income of $96,112 indicates that the area attracts a mix of middle-class and upper-middle-class residents. However, the high cost of living, particularly in terms of housing, means that affordability is a significant concern for many renters, especially those relying on Section 8 vouchers. With only 23.8% of the median income allocated towards a two-bedroom unit, it becomes clear that the market is not very affordable for low-income renters. The disparity between the FMR and the actual market rent highlights the challenge faced by renters who need to find housing within their budget. This tight market condition implies that there is a strong demand for rental properties, but the supply is limited, making it difficult for voucher holders to find suitable accommodation. #### Investor Angle From an investor’s perspective, the ZIP code 97702 presents a mixed picture. While the high occupancy rate and strong demand for rental properties suggest potential for cash flow, the actual rents far exceed the FMR. This means that properties rented at FMR levels will likely struggle to attract tenants willing to pay such high prices. To determine if the ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and management fees. If we assume a conservative estimate of total monthly expenses at around 70% of the FMR, then for a two-bedroom unit: - Monthly FMR: $1910 - Estimated Expenses: $1910 * 0.7 = $1337 This leaves a net cash flow of $1910 - $1337 = $573 per month. While this is positive, it is important to note that the actual market rent is much higher, at approximately $561,293 for a two-bedroom unit. Thus, investors would likely see better returns by renting at market rates rather than FMR levels. The investment grade for this ZIP code can be considered moderate to high due to the strong demand and high occupancy rate. However, the reliance on FMR for Section 8 vouchers makes it less attractive for investors seeking to maximize returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or studio apartments. These units have lower FMRs ($1470 and $1460 respectively), which might still allow for positive cash flow when considering typical expenses. Additionally, smaller units are often more affordable for voucher holders, increasing the likelihood of securing tenants. 2. **Consider Outlying Areas**: Investors should consider purchasing properties in outlying areas where the market rent is closer to the FMR. This could provide better opportunities for cash flow while still catering to the needs of Section 8 voucher holders. 3. **Diversify Tenant Base**: To ensure steady cash flow, investors should diversify their tenant base beyond just Section 8 voucher holders. This could involve renting to non-voucher tenants at market rates, thereby balancing the financial risks associated with the voucher program. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors in ZIP code 97702 is to **Skip** this market. The limited availability of units at FMR levels, combined with the high costs of ownership, makes it challenging to achieve positive cash flow. Instead, investors should look for ZIP codes with a more favorable balance between FMR and market rent, or consider outlying areas where the cost of living is lower. In summary, while ZIP 97702 offers strong demand and occupancy rates, the high cost of living and the significant gap between FMR and actual rents make it a less viable option for investors primarily interested in Section 8 vouchers.

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.