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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $334,381 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 97844 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,020, while the Census American Community Survey (ACS) indicates that the market rent is $880. This creates a gap of $140, or approximately 13.7%, between what landlords can charge under the Section 8 program and the prevailing market rate.
In this scenario, where the FMR exceeds the market rent, landlords have an opportunity to achieve higher yields by participating in the Section 8 program. The extra $140 per unit represents additional monthly income compared to renting at the open-market rate. This makes it particularly attractive for landlords and small-portfolio investors looking to maximize their rental income in ZIP 97844.
The ZIP code has a relatively low percentage of renters at 13.3%, suggesting that homeownership is prevalent. However, the median home value of $314,501 and median income of $76,090 indicate that a significant portion of the population might find it challenging to afford homes at these levels, making rental properties an essential part of the housing market.
While the higher FMR provides a financial incentive for landlords, they must also consider the administrative aspects and potential challenges associated with housing voucher tenants. These include the need to comply with HUD standards, regular inspections, and sometimes dealing with tenants who have different expectations regarding property maintenance and management.
Despite these considerations, the financial advantage of the $140 gap makes Section 8 participation a compelling strategy for landlords in ZIP 97844. It allows them to capitalize on government subsidies while serving a demographic that might otherwise struggle to find affordable housing.
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.