Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,780 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,580 |
| 5 Bedrooms | $4,153 |
| 6 Bedrooms | $4,651 |
| 7 Bedrooms | $5,023 |
| 8 Bedrooms | $5,274 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 98629 (La Center, WA) for Section 8 investment, follow this decision tree based on the provided data.
1) Does FMR $2420 (zip FY 2024) clear debt service on a $661,898 property?
Yes: The Fair Market Rent (FMR) of $2420 is sufficient to cover the debt service on a property valued at $661,898. This indicates that the rental income can support the mortgage payments and other financial obligations associated with owning the property.
No: The FMR of $2420 does not clear the debt service on a property costing $661,898. In this case, the rental income from a Section 8 tenant would not be enough to cover the financial obligations of the property, making it a poor investment choice for Section 8 purposes.
It Depends: The answer hinges on the specifics of the mortgage terms and any additional costs such as taxes, insurance, and maintenance. Without these details, it's impossible to definitively say whether the FMR will cover all debt service requirements.
2) Is market rent $1,696 (ZORI) above, at, or below FMR?
Above: If the market rent of $1,696 is below the FMR of $2420, then the ZORI is lower than what Section 8 allows, indicating potential for higher rents under Section 8 compared to market rates.
At: If the market rent aligns closely with the FMR, the property might struggle to attract market-rate tenants while still being within the bounds of acceptable Section 8 rents.
Below: If the ZORI is below the FMR, it suggests that Section 8 rents could be higher than what the market demands, potentially leaving the property overpriced for non-Section 8 tenants.
3) Are 14.6% renters + N/A-day DOM enough demand?
Yes: With 14.6% of the population renting, there is a reasonable level of demand. However, the lack of data on Days on Market (DOM) means that we cannot assess how quickly properties are rented out. Assuming low DOM, the demand is strong enough to support Section 8 investments.
No: If the DOM is high, despite the 14.6% rental rate, it implies that finding tenants is difficult. This would make the investment less attractive due to potential vacancy issues.
It Depends: The 14.6% rental rate alone does not provide enough information to conclude on demand without knowing the DOM. High DOM could indicate weak demand even with a decent rental rate.
If the FMR clears debt service and is above market rent, with a reasonable rental rate and low DOM, then the answer is yes, landlords should consider buying in ZIP 98629 for Section 8. Otherwise, the decision to invest is either negative or requires further investigation into specific property costs and market conditions.
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.