Location: Portland-Vancouver-Hillsboro, OR | Metro: Longview-Kelso, WA MSA
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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $667,707 | 0.35% | F |
| 4BR | $2,800 | $803,235 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP 98601, located in the Portland-Vancouver-Hillsboro, OR-WA MSA metro area, can be effectively integrated into a Section 8 portfolio strategy as a cash-flow anchor. The Fair Market Rent (FMR) for FY 2024 in this ZIP code is set at $1780 for a one-bedroom unit, providing a stable baseline for rental income. Despite the lack of specific market rental data, the high median home value of $703,379 suggests that the area is relatively affluent and has limited affordable housing options. This makes Section 8 vouchers particularly attractive to tenants in ZIP 98601.
The spread between the FMR and the potential market rents, even without precise market figures, indicates that landlords can rely on a steady stream of income from Section 8 tenants. This reliability is crucial for maintaining consistent cash flow, which is essential for any investment property. Furthermore, the high median income of $106,776 in the area reduces the risk of tenant default, as residents have the financial means to cover their portion of the rent.
While the ZIP does not provide strong indicators for an appreciation play, given the absence of specific price-cut shares and days on market (DOM) data, it still offers a solid foundation for long-term investment. The 13.9% renter share suggests that a significant portion of the population is already renting, making it a suitable location for rental properties. However, the primary focus should remain on the cash-flow stability provided by the Section 8 program.
In conclusion, ZIP 98601 serves best as a cash-flow anchor within a Section 8 portfolio strategy. The guaranteed rental income at $1780 per month, combined with the financial stability of the local population, ensures a reliable source of cash flow for landlords and small-portfolio investors.
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.