Location: Harney County, OR | Metro: Harney County, OR
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $243,599 | 0.59% | F |
| 4BR | $1,720 | $272,395 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 97738 centers around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $970, whereas the Census ACS data reveals that the market rent stands at $441. This creates a gap of $529, which translates to approximately 119% above the current market rate.
Given that the FMR exceeds the market rent, properties in 97738 become attractive for landlords and small-portfolio investors looking to maximize yields. Voucher tenants, who receive rental assistance through the Section 8 program, can effectively bridge this gap, ensuring that landlords receive a higher rent payment than what they could get from non-voucher tenants in the open market. This scenario makes it a compelling yield play, where investors can leverage government subsidies to achieve better returns on their investments.
However, accepting Section 8 tenants also comes with considerations. The cost of housing voucher tenants below open-market rates means landlords must adhere to certain regulations and standards set by the housing authority. This includes maintaining property quality and undergoing regular inspections. Despite these constraints, the financial advantage of receiving the higher FMR subsidy outweighs the potential downsides, especially when compared to the lower market rents.
The analysis is anchored in the broader context of ZIP 97738, where 23.6% of residents are renters. The median home value in the area is $227,144, indicating a mix of homeowners and renters. Additionally, the median income of $89,071 suggests that many households might find it challenging to afford market rents without assistance, further underscoring the importance of the Section 8 program in providing affordable housing solutions.
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.