Location: Wasco County, OR | Metro: Jefferson County, OR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
Madras, OR, located in ZIP code 97741, is a modest-sized community with a population of 13,663 residents. Approximately 34.3% of these residents are renters, indicating a significant demand for rental properties. The median household income in the area stands at $70,983, suggesting a middle-class community capable of supporting a range of housing options. The median home value is $370,643, which reflects a stable housing market where property values have found a comfortable equilibrium.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 97741 is set at $1,440 for fiscal year 2026. This is notably higher than the current market rent, which is measured at $1,355 per month using Zillow's ZORI index. This gap between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors to potentially increase their rental income by participating in the Section 8 program without significantly overpricing their units.
The disparity between the FMR and the market rent suggests that Madras, OR, could be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed income through the Section 8 program can provide steady cash flow with minimal risk. Meanwhile, value-add buyers can leverage the difference to improve properties and still maintain competitive pricing, thereby increasing their equity and potential for higher returns.
In summary, ZIP 97741 offers a balanced environment for real estate investment, particularly for those interested in Section 8 properties. With a substantial portion of the population renting and a favorable income-to-rent ratio, the area supports a robust rental market. The current FMR provides a margin above the market rent, making it attractive for both passive and active investors.
Data Sources: FMR data from HUD (2027). 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.