Location: Umatilla 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 | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $241,257 | 0.5% | F |
| 3BR | $1,680 | $343,095 | 0.49% | F |
| 4BR | $1,990 | $417,836 | 0.48% | F |
| 5BR | $2,308 | $497,599 | 0.46% | F |
U.S. Census Bureau data (2024)
In ZIP code 97838, which encompasses Hermiston, OR, in Umatilla County, the economics of Section 8 housing involve understanding the relationship between the Standard Area Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment, the SAFMR for fiscal year 2026 is set at $1,320. This figure represents the maximum amount that the Section 8 program will pay for rent in this specific ZIP code. However, the local market rent, according to Census ACS data, is lower at $1,107.
A landlord participating in the Section 8 program receives reimbursement based on the voucher holder's share of the rent plus the utility allowance. The tenant portion of the rent is typically 30% of their adjusted income. For example, if a tenant has an adjusted income of $1,000 per month, they would be responsible for $300 towards the rent. The remaining portion of the rent is covered by the Section 8 voucher.
The utility allowance is a fixed amount provided to cover electricity, gas, water, and sewer costs. In ZIP 97838, the utility allowance for a two-bedroom apartment is $350. This means that the total reimbursement a landlord can expect is the sum of the tenant's portion of the rent and the utility allowance.
To illustrate, let's assume a tenant's portion of the rent is $300, and the utility allowance is $350. The total reimbursement would be $650. If the market rent is $1,107, then the voucher would cover up to $1,320. However, since the market rent is lower, the landlord would receive $1,107 in rent plus the $350 utility allowance, totaling $1,457. This scenario shows a surplus for the landlord, as the combined reimbursement exceeds the market rent.
It's important to note that the SAFMR applies specifically to this ZIP code, meaning it is set considering the local rental market conditions. Given these figures, landlords in ZIP 97838 can expect a surplus when renting a two-bedroom unit under the Section 8 program, due to the higher SAFMR compared to the actual local market rent. The surplus in this case is $157 per month, calculated as the difference between the combined reimbursement ($1,457) and the local market rent ($1,300).
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.