Location: Bend-Redmond, OR | Metro: Bend-Redmond, OR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,440 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
Skeptical investors considering ZIP 97708 in Unknown, OR, might have several concerns regarding the feasibility of investing in properties that participate in the Section 8 program. Here we address these key objections with the available data.
The first objection is whether the Fair Market Rent (FMR) of $1,620 for ZIP 97708 in fiscal year 2024 will be sufficient to cover the mortgage on a property. The data provided does not include specific mortgage rates or property values for the area, making it impossible to definitively calculate if the FMR will cover a mortgage. However, it's important to note that the FMR is set to ensure that rental housing is affordable for low-income families. To make an informed decision, investors should consult local real estate agents and mortgage lenders to determine average property values and current mortgage rates.
A second concern is whether there is enough tenant demand at the given rate. Unfortunately, the data does not specify the percentage of tenants who might be willing to pay $1,620 per month for a Section 8 property. Nevertheless, the FMR is indicative of the average rent level that is deemed reasonable for the area. This suggests that there is likely a pool of eligible tenants who can afford this amount through their voucher. To assess the actual demand, investors should look into local vacancy rates and the number of households participating in the Section 8 program.
The third objection revolves around the sustainability of voucher payments keeping up with market rents. The data does not provide a direct comparison between voucher amounts and market rents in ZIP 97708. However, historically, the Housing Choice Voucher Program adjusts FMRs annually to reflect changes in the cost of living and housing markets. This adjustment process aims to ensure that voucher holders can access decent, safe, and sanitary housing without paying more than 30% of their adjusted income towards rent. Investors should monitor annual FMR updates to gauge how well voucher payments align with market conditions.
In conclusion, while the data does not fully address all aspects of the objections raised, the FMR of $1,620 for ZIP 97708 in fiscal year 2024 provides a baseline for assessing the viability of Section 8 investments. It is crucial for investors to gather additional local information to make informed decisions.
Data Sources: FMR data from HUD (2027).
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.