Location: Morrow County, OR | Metro: Morrow 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 | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $326,735 | 0.46% | F |
| 4BR | $1,810 | $374,662 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 97818 in Morrow County, Oregon, reveals several key points for potential Section 8 real-estate investments.
Firstly, the rent math does not work favorably. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $1,010, while the actual market rent (ZORI) stands significantly higher at $1,511. This means that landlords relying solely on Section 8 vouchers would be receiving approximately $501 less per unit than what the market demands, indicating a financial shortfall.
Secondly, regarding acquisition affordability, the median home value is $333,518. However, the lack of data on days on market (DOM) and the percentage of homes sold with price cuts suggests an incomplete picture of how easily properties can be acquired and resold. This absence of information makes it challenging to assess the true affordability and liquidity of property acquisitions in this area.
Lastly, there is a moderate tenant demand. With a population of 5,610, and 36.6% of residents being renters, there are roughly 2,050 potential tenants. This figure indicates a reasonable pool of individuals who could be interested in renting properties, supporting the viability of rental operations in this ZIP code.
Verdict: Investing in ZIP 97818 under the Section 8 program is financially unviable due to the significant gap between the FMR and ZORI. Although there is a decent tenant base, the higher market rents suggest that landlords should seek alternative sources of income or consider other areas where the FMR more closely aligns with market rents to ensure profitability.
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.