Location: Union County, OR | Metro: Union 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 | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $254,923 | 0.44% | F |
| 3BR | $1,540 | $344,925 | 0.45% | F |
| 4BR | $1,860 | $404,771 | 0.46% | F |
| 5BR | $2,158 | $475,492 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 97850, which includes La Grande, OR, reveals a significant opportunity for landlords and small-portfolio investors due to the gap between the Fair Market Rent (FMR) and the market rent. The FMR for the metro area in fiscal year 2026 is set at $1,220, while the actual market rent, measured by Zillow's ZORI, stands at $1,181. This means that the FMR is $39 higher than the market rent, representing an increase of approximately 3.3%.
This gap makes it particularly advantageous for landlords to accept Section 8 tenants. Despite the common perception that voucher tenants might bring additional administrative burdens, the reality is that landlords can secure rental income that is above the prevailing market rate. In a region where 41.0% of residents are renters, the demand for affordable housing is high, and Section 8 vouchers ensure a steady stream of income without the risk of vacancy.
Moreover, the median home value in La Grande, OR is $324,561, indicating a relatively stable real estate market. However, the median household income is $63,421, which underscores the financial challenges many residents face in affording housing at market rates. By participating in the Section 8 program, landlords can tap into a reliable source of rental income that exceeds the current market conditions.
It is important to note that while the FMR provides a benchmark for rental costs, the actual costs associated with maintaining and managing properties that house voucher recipients must also be considered. Landlords should ensure that the additional $39 per unit does indeed cover any extra expenses, such as repairs and maintenance, which might be necessary to meet the standards required by the housing voucher program.
In summary, the gap between the FMR and market rent in ZIP 97850 presents a yield play for landlords and small-portfolio investors. By accepting Section 8 tenants, they can achieve a slight premium on their rental income, aligning well with the local economic conditions and the needs of the community.
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.