Location: Union County, OR | Metro: Umatilla 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 | $950 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $242,957 | 0.57% | F |
| 3BR | $1,920 | $312,239 | 0.61% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 97886, which encompasses Weston, Oregon, within the Umatilla County and Union County metro area, reveals a favorable cashflow scenario for property owners. The Fair Market Rent (FMR) set by HUD for this region in fiscal year 2026 is $1,530, while the average market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $1,153. This significant difference between the HUD FMR and the actual market rent indicates that voucher tenants will generally cashflow positively at the HUD rate, providing a margin of about $377 per unit per month.
To further assess the investment potential, consider the median home value in ZIP 97886, which is $268,164. Using the HUD FMR of $1,530, we can calculate the rent-to-price ratio as approximately 6.45%, indicating that rental income is relatively high compared to the cost of purchasing a home in this area. This suggests that renting out properties under the Section 8 program could be more financially advantageous than owning them outright, given the current market conditions.
The dynamics of the local real estate market also support this analysis. While specific data on days on market (DOM) and the percentage of homes that require price reductions are not available, the overall trend in the region points towards stability. The combination of a strong cashflow position and a favorable rent-to-price ratio makes this area particularly attractive for Section 8 investors looking to maximize returns.
In conclusion, the strongest angle for Section 8 investors in ZIP 97886 is cashflow, due to the substantial gap between the HUD FMR and the actual market rent, coupled with a reasonable rent-to-price ratio.
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.