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 | $1,640 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,020 | $537,419 | 0.38% | F |
| 3BR | $2,740 | $580,012 | 0.47% | F |
| 4BR | $3,300 | $780,800 | 0.42% | F |
| 5BR | $3,828 | $938,129 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP code 98675, located in Yacolt, WA, is characterized by a relatively small population of 7,305 residents, with only 14.9% of them being renters. This indicates a predominantly owner-occupied community where the majority of individuals own their homes. The median household income in this area stands at a robust $99,877, suggesting a middle to upper-middle class demographic. Furthermore, the median home value is notably high at $642,922, reflecting the affluent nature of the neighborhood.
The economic landscape for rental properties in ZIP 98675 is defined by the Federal Market Rent (FMR) set at $1,860 for the fiscal year 2024, compared to the actual market rent of $1,422 based on Census ACS data. This discrepancy means that landlords participating in the Section 8 program can expect to receive higher rents than what the local market dictates, thus providing an opportunity for increased profitability without compromising on occupancy rates.
Given these characteristics, ZIP 98675 could be an ideal location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed higher rent through the Section 8 program offsets the need for active property management. Meanwhile, for hands-on investors looking to add value, the affluent neighborhood and high median home values present an excellent backdrop for enhancing property appeal and increasing long-term returns. However, the limited rental market suggests that opportunities might be fewer, so careful selection and strategic investment are key.
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.