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 | $1,630 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,010 | $325,711 | 0.62% | D |
| 3BR | $2,730 | $533,554 | 0.51% | F |
| 4BR | $3,280 | $668,889 | 0.49% | F |
| 5BR | $3,805 | $820,365 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 98685, which includes Vancouver, WA, and parts of Clark County, revolve around the Subsidized Average Fair Market Rent (SAFMR) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2390. This figure is specific to this ZIP code, meaning it's tailored to reflect the rental conditions in 98685. The local market rent, as measured by Zillow's ZORI index, stands at $2410.
A Section 8 voucher program works by subsidizing the difference between what a low-income tenant can afford and the SAFMR. Tenants are generally expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1600 for a tenant in this scenario, they would pay approximately $480 towards rent ($1600 * 0.3).
The voucher then covers the remaining amount up to the SAFMR. In this case, the voucher would cover $1910 ($2390 - $480). However, the voucher also includes utility allowances, which can vary but are typically around $200-$300 per month. Assuming a utility allowance of $250, the total voucher payment would be $2160 ($1910 + $250).
This means that for a two-bedroom apartment priced at the SAFMR of $2390, the landlord would receive $2160 from the voucher program. The shortfall, or reimbursement gap, for the landlord would thus be $230 ($2390 - $2160). Conversely, if the apartment is priced at the local market rent of $2410, the reimbursement gap increases to $260 ($2410 - $2160).
To summarize, landlords in ZIP 98685 can expect to receive a fixed amount of $2160 for a two-bedroom unit under the Section 8 program, leading to a reimbursement gap of $230 when the apartment is priced at the SAFMR and a gap of $260 when priced at the local market rent. These figures provide a clear picture of the economic realities landlords face when participating in the Section 8 program in this specific ZIP code.
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.