Location: Umatilla County, OR | Metro: Umatilla 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 | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $860 | $183,403 | 0.47% | F |
| 2BR | $1,120 | $228,990 | 0.49% | F |
| 3BR | $1,560 | $313,051 | 0.5% | F |
| 4BR | $1,880 | $379,819 | 0.49% | F |
| 5BR | $2,181 | $437,502 | 0.5% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP code 97801, which includes Pendleton, Oregon, presents a complex landscape for both renters and landlords. The median income here stands at $71,639, while the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,249 per month. This means that the average renter would spend approximately 20.2% of their annual income on rent alone, assuming they pay the market rate.
To put this into perspective, let's consider the federal housing voucher payment standard for the area, which is set at $1,200 per month for the fiscal year 2026. This figure is slightly below the ZORI but still represents a significant portion of the median income, around 19.5%. This indicates that even with a voucher, the cost of rent would be a substantial expense for the typical household in Pendleton.
Given that 39.3% of the 21,575 population are renters, the demand for affordable housing is considerable. However, the gap between the median income and the rent rates suggests that many households may struggle to find housing that fits comfortably within their budget. For landlords, this means there could be stiff competition for tenants who can afford to pay the market rate without assistance.
The takeaway for landlords considering whether to accept vouchers versus focusing on cash-paying tenants is clear. While vouchers provide a guaranteed source of income, the difference between the ZORI and the FMR ($1,249 vs. $1,200) is minimal. Landlords should prepare for a competitive environment where affordability is a key concern for renters. Offering units that meet or slightly exceed the voucher payment standard could attract a steady stream of tenants, especially given the high percentage of renters in the area.
However, landlords should also be aware of the potential for higher vacancy rates if they focus solely on cash-paying tenants, particularly those who might struggle to consistently afford the market rate of $1,249 per month. Balancing the portfolio to include some units that are attractive to voucher holders can mitigate risks and ensure a more stable income stream.
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.