Section 8 Fair Market Rent (FMR) for ZIP 04101 - 2026

Market Analysis for ZIP 04101

Cities Covered: This ZIP code covers Portland.

FMR Rates (FY 2026):
Studio: $1,510 | 1BR: $1,710 | 2BR: $2,190 | 3BR: $2,660 | 4BR: $2,900

Median Property Prices & 1% Rule Analysis:

• 2BR Properties: Median price ~$320,000
  1% Rule: $2,190 ÷ $320,000 = 0.54% 👍 Meets 1% Rule
• 3BR Properties: Median price ~$400,000
  1% Rule: $2,660 ÷ $400,000 = 0.00% 👎 Below 1% Rule

Market Overview: The 04101 ZIP code is the central business district of Portland, with a diverse economy driven by healthcare, education, and tourism. The demographic breakdown shows 40% renters are professionals, followed by families (30%), students (10%), and service workers (20%). Vacancy rates remain low at 2-3%, while rents have increased 6-8% year-over-year due to strong demand and limited supply. Market drivers include Portland's growing tech industry, expanding healthcare sector, and increasing tourism.

Investment Takeaway: Purchase prices in the $300-400k range offer gross yields of 7-9% on 2BR units, while 3BR properties in the $400-500k segment can achieve 8-10%. Turnkey investors should target rent levels above $1,800 for 2BR and $2,200 for 3BR. Budget 12-15% of purchase price annually for maintenance, property taxes, and vacancy reserves to ensure positive cash flow.

Key Considerations: This is a cash-flow market with moderate appreciation potential (4-6%). Screen tenants carefully using credit scores 700+, income verification at 3x rent, and thorough reference checks. Budget 10% of purchase price for annual maintenance, 5-7% for vacancy reserves, and expect property taxes of 1.8-2.2% of assessed value.