Location: Baker County, OR | Metro: Baker County, OR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 97840 presents an interesting opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, based on fiscal year 2026 estimates, is set at $1,270 annually. Meanwhile, the market rent for a similar unit, according to the Census ACS, stands at $420 annually.
To derive the cap-rate, we must first understand the gross yield. Gross yield is calculated by dividing the annual rental income by the property's value. In the case of Section 8, the implied gross yield can be derived using the FMR. For ZIP 97840, the annualized FMR of $1,270 provides a clear benchmark for rental income. However, without a specific median home value for the area, we cannot calculate a precise gross yield percentage. Instead, we can compare the annualized FMR directly to the market rent to gauge the relative attractiveness of each scenario.
The annualized FMR of $1,270 under Section 8 is significantly higher than the market rent of $420. This suggests that participating in the Section 8 program could offer a more stable and higher guaranteed income compared to the current market conditions. Given the high renter density of 88.7%, it is evident that there is a strong demand for rental properties in ZIP 97840, which supports the viability of both rental scenarios.
The Days on Market (DOM) figure being N/A indicates either insufficient data or a very active rental market where units are leased quickly, often before formal listings are even completed. This rapid leasing pace supports the higher demand and suggests that landlords could expect to fill vacancies promptly, whether through Section 8 or the open market.
In conclusion, while the exact gross yield cannot be determined due to the lack of median home value data, the annualized FMR under Section 8 ($1,270) is notably higher than the current market rent ($420). This makes the Section 8 scenario more attractive for stable, long-term income generation. The high renter density and quick leasing times further bolster the case for both options, though Section 8 offers a more predictable revenue stream.
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.