Section 8 Fair Market Rent (FMR) for ZIP 97756 - 2027

Investment Score for ZIP 97756

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	$1,280
1 Bedroom	$1,290
2 Bedrooms	$1,690
3 Bedrooms	$2,340
4 Bedrooms	$2,820
5 Bedrooms	$3,271
6 Bedrooms	$3,664
7 Bedrooms	$3,957
8 Bedrooms	$4,155

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
2BR	$1,690	$417,019	0.41%	F
3BR	$2,340	$499,904	0.47%	F
4BR	$2,820	$596,534	0.47%	F
5BR	$3,271	$688,807	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 97756 (Redmond, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 97756 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1200 - 1BR: $1210 - 2BR: $1570 (which represents 21.6% of the median household income of $87,278) - 3BR: $2180 - 4BR: $2630 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR property is $415,424, which translates to a monthly rent of approximately $1,814 based on typical rental yields. This is nearly 1.2x the FMR for a 2BR unit, indicating that voucher holders face significant constraints in finding affordable housing. They would likely need to look for properties below the FMR levels, which are scarce given the high demand and limited supply of affordable units. #### Affordability & Renter Profile ZIP code 97756 has a population of 44,914, with 30.8% of residents being renters. The occupancy rate stands at 92.4%, suggesting a tight rental market with little excess capacity. Given the median household income of $87,278, the affordability of housing is a critical issue. The FMR for a 2BR unit is only 21.6% of the median income, which is relatively low compared to the actual rental prices. This implies that the majority of renters, especially those relying on Section 8 vouchers, struggle to find housing within their budget. The high price-to-FMR ratio of 22.1x further underscores the unaffordable nature of the market for many renters. #### Investor Angle From an investor’s perspective, the ZIP code 97756 presents a challenging scenario for cash flow-positive investments at the FMR levels. The Zillow median price for a 2BR unit is $415,424, which would typically yield a monthly rent of around $1,814. At this level, the rent exceeds the FMR by about $244 per month. Therefore, landlords who want to attract Section 8 voucher holders must either reduce their rents to match the FMR or accept lower returns on their investments. Given the high median home value and the tight rental market, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. The primary constraint is the difficulty in finding properties that can be rented out at or below the FMR without significant financial losses. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as 0BR or 1BR properties, where the FMR is lower ($1200-$1210). These units are more likely to be rented out by Section 8 voucher holders, providing a stable tenant base despite lower rental income. 2. **Consider Lower-Priced Properties**: While the median home value is high, there may still be some lower-priced properties available. Investors could target these properties, which might be closer to the FMR levels, to ensure cash flow positivity while catering to the needs of voucher holders. 3. **Utilize Government Programs**: Investors should explore government programs designed to support affordable housing initiatives. These programs often provide incentives or subsidies that can help offset the lower rental income associated with FMR-level properties. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 97756 is to **Skip**. The high actual rental prices and the tight market make it difficult to find properties that can generate positive cash flow while adhering to FMR guidelines. However, if investors are willing to accept lower returns or are primarily interested in long-term appreciation, they might consider **Hold** positions in smaller units or lower-priced properties. Overall, the market dynamics suggest that this ZIP code is not ideal for cash flow-positive investments targeting Section 8 voucher holders.

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.