Location: Portland-Vancouver-Hillsboro, OR | Metro: Portland-Vancouver-Hillsboro, OR-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 | $1,830 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $513,863 | 0.44% | F |
| 3BR | $3,060 | $594,092 | 0.52% | F |
| 4BR | $3,680 | $707,586 | 0.52% | F |
| 5BR | $4,269 | $837,711 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 98642, Ridgefield, WA, include higher tenant turnover and increased vacancy exposure. Tenant turnover can be problematic because it leads to frequent changes in occupancy, which can disrupt the stability of the property and increase administrative burdens. In Ridgefield, the market rent stands at $2,034, while the Fair Market Rent (FMR) for FY 2024 is $2,530. This discrepancy suggests that tenants might seek higher rents elsewhere, leading to a higher turnover rate.
Vacancy exposure is another significant risk, especially given the 34-day Days on Market (DOM) average. A shorter DOM indicates a competitive rental market where properties can become vacant quickly, leaving landlords vulnerable to financial losses if they cannot fill vacancies promptly. The typical home value in Ridgefield is $652,434, and the median household income is $120,822. These figures imply that many residents can afford market-rate rents, potentially leading to a preference for non-subsidized housing, thus increasing the likelihood of vacancies.
Deferred maintenance is also a concern. With a typical home value significantly higher than the median income, landlords must ensure that their properties are well-maintained to attract and retain tenants. Neglecting maintenance can lead to costly repairs and decreased property value, which is particularly detrimental when dealing with lower-income tenants who rely on Section 8 vouchers.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 15.9%. High renter density typically translates into a robust demand for subsidized housing, making it easier to find and retain tenants who qualify for Section 8 vouchers. This demand helps stabilize occupancy rates and reduces the impact of vacancy exposure.
In conclusion, despite the challenges posed by higher tenant turnover and vacancy exposure, the strong demand for subsidized housing makes ZIP 98642 a moderate risk for a first-time Section 8 landlord. Proper management and maintenance can help offset some of the risks associated with this type of investment.
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.