Navigating The Rental Market: Understanding Oregon’s Notoriously High Barriers To Qualify

If you or someone you know has rented an apartment or house in Oregon in the last five years, you know how difficult it can be. With the cost of living skyrocketing, rent increasing, and rising inflation, many are being priced out of their current residences. Low income options such as section 8 housing have unreasonably low income requirements and are more than often unavailable. Waitlists just to apply to these units are generally full with only a few openings a year to even attempt to get into a waitlist, making them an incredibly non viable option for most. Homeless shelters are commonly full and generally only allow a single person to stay making it hard for couples, families, or people with pets. All of this coupled with the staggering lack of mental health resources makes it no surprise that the homeless population has grown steadily year over year reaching an all time high.  

Let's dive a little deeper.

Unlike most states, Oregon has no limit on what landlords can charge prospective tenants in terms of a security deposit. Because of this, you’ll commonly face security deposits equivalent to 1-2 months rent. This in and of itself can be prohibitively high. Landlords will also commonly require tenants to pay both first and last months rent upfront. With many living paycheck to paycheck and having little to no money in savings, this upfront cost excludes a lot of people. 

The next hurdle is the income and credit requirements. In Oregon, it is very common for landlords to require proof of income equal to 3 times the monthly rent. On top of that, Oregon has one of the top ten highest average credit score requirements in the US with many requiring a score of 690 or higher, in addition to a clean credit and rental history. 

To put all of that into perspective, a low-average one bedroom apartment for a single individual (with no pets) in the 600 sq ft range will rent for around $1,500. Let’s stick with the low- average numbers and say the landlord requires first and last month's rent plus a security deposit equal to one month's rent. Add in the $150 application fee and that's an upfront cost of $4,650. 

An upfront cost of $4,650 with a monthly income requirement of $4,500. 

So let’s say that is unattainable and that same single individual has to look for section 8 low income housing. As of 2024, the maximum income threshold to qualify would be $20,200 per year or about $1,683 per month. If a person does happen to fall within that range, they then face the barrier of section 8 housing being nearly impossible to find. The waitlist for affordable housing in Oregon is perpetually full and only opens up a couple of times a year, a few days at a time, for new folks to apply to get onto the list. If you are lucky enough to get onto the waitlist, you are then subject to a lottery system that typically takes years. So what is the next option?

Shelters. In Oregon, most shelters only allow for individuals to stay alone. This means if a person has a pet, a spouse, or children, they will often be turned away or forced to separate. As many are not willing to abandon their pet or loved one, they are forced to make the difficult choice not to utilize shelters and to stay in their vehicle or on the streets. When we couple this with the lack of mental health services, high rates of substance abuse, and lack of job security, we get an idea of why Oregon has such a high rate of unhoused individuals that grows steadily each year. 

All of these factors play into why housing and humanitarian services are crucially important. While Oregon spends billions of dollars on homeless services, it is important to also focus on services to prevent the cycle of homelessness from occurring. This is where programs such as the Rent Well Program are crucial. The Rent Well program is a tenant education program based in Oregon designed to empower individuals seeking rental housing. It provides comprehensive education on the rental process, tenant rights, and responsibilities, as well as strategies for improving rental history. By equipping participants with valuable knowledge and skills, Rent Well aims to increase their chances of securing stable housing and avoiding homelessness. To learn more about the Rent Well Program and all it has to offer, check it out here https://rentwell.org/

This article touches on the importance of keeping pets with their owners while experiencing homelessness:http://www.cnn.com/2011/LIVING/05/10/homeless.pet.care/index.html 

“Affordable/Subsidized Housing Resources.” Multnomah County, 7 Feb. 2024, www.multco.us/dd/affordablesubsidized-housing-resources. 

Bianchi, Carol. “Oregon Section 8 Housing 2024.” Affordable Housing Hub, Affordable Housing Hub, 5 Jan. 2024, affordablehousinghub.org/state-section-8-guides/oregon-section-8-housing#.