TriMet’s November 30, 2025, evening bus frequency reductions prompt early rider concerns, meriting monitoring for subtle effects on multifamily demand in the Portland metro.
TriMet FX2–Division bus at the OMSI SE Water station in Southeast Portland. Photo: Truflip99 via Wikimedia Commons (CC BY 4.0)
TriMet’s Initial Service Adjustments Take Effect
On November 30, 2025, TriMet implemented the first phase of service reductions, focusing on reduced frequency during low-ridership evening hours on five bus lines. These changes include:
Line FX2–Division: Every 24–35 minutes after 7 p.m. daily.
Line 35–Macadam/Greeley: Hourly after 9 p.m., with partial route suspension after 9 p.m.
Lines 52–Farmington/185th, 77–Broadway/Halsey, and 81–Kane/257th: Hourly after 9 p.m. on weekdays.
These targeted adjustments aim to address a projected $300 million budget gap over the coming years, driven by operating costs rising over 50% since 2019, ridership recovering to only about two-thirds of pre-pandemic levels, and insufficient new funding sources. A second phase of similar reductions on additional lines is planned for March 2026, with broader changes potentially following in late 2026 and 2027 if revenue challenges continue.
While these initial cuts are modest and timed for off-peak periods, they signal ongoing fiscal pressures on public transit in the Portland metro area.
Appraisal Implications
Residential Properties
Reliable transit access contributes to neighborhood demand and home marketability in the Portland region, particularly in areas with higher Transit Scores. These evening-focused reductions may have limited immediate impact on most single-family homeowners, many of whom have vehicle alternatives for off-peak travel.
Appraisers should remain attentive to buyer preferences in affected submarkets, such as parts of East Multnomah County or Washington County’s outer corridors served by these lines. Properties near core MAX stations or frequent daytime routes are likely to retain stronger connectivity advantages.
Multifamily Properties
Multifamily operators and investors may benefit from closer monitoring of these changes, especially for properties serving tenants with lower vehicle ownership rates. Reduced evening bus frequencies could subtly influence tenant convenience for shift workers or late commutes, potentially affecting renewal rates or lease-up pacing in directly impacted areas.
Early rider feedback highlights these concerns: parents report challenges managing long waits with children during appointments, while commuters note risks of lateness for evening shifts. For income valuations, any emerging softness in rents or occupancy—particularly in outlying complexes reliant on these specific lines—could inform minor adjustments to projected income streams. Core urban assets with redundant transit options should experience minimal effects.
Market Context
Portland’s housing policies continue to emphasize transit-oriented development and density to support affordability and sustainability goals. These initial service reductions—limited to off-peak hours—create some tension with those objectives, as reduced evening access may encourage greater car dependency in affected areas, countering recent efforts to reduce parking minimums and enhance walkability.
Appraisers, lenders, and investors in transit-reliant submarkets should monitor emerging patterns in lease-ups, renewal rates, and buyer feedback as riders adapt to the changes.
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CODA
Are you an agent in Portland and wonder why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
The Oregon DOJ secured a settlement with MV Realty, clearing 669 restrictive 40-year listing liens affecting homes in the Portland metro area and throughout the state.
Via Canva Pro
Major Consumer Settlement Voids Restrictive 40-Year Contracts
In a significant action benefiting homeowners across the Portland region and Oregon, the state’s Department of Justice (DOJ) has secured a settlement with Florida-based MV Realty, resolving allegations of deceptive practices involving “Homeowner Benefit Agreements” (HBAs). These controversial agreements provided property owners with a small, upfront cash payment—often only a few hundred dollars—in exchange for exclusive rights to list the home with MV Realty for a period of 40 years.
The key to the scheme’s success was its aggressive targeting. The Oregon DOJ specifically noted that the program utilized “deceptive and coercive marketing to trap Oregon homeowners”. This practice was designed to entice homeowners who needed immediate, small cash payments, trapping them in contracts that Attorney General Dan Rayfield described as “outrageous”—an attempt to hold property equity hostage for decades. Lawsuits filed by other Attorneys General across the country further confirm this was a pattern of “predatory financial product” marketing aimed at “cash-strapped homeowners” and the elderly, often for a payout that amounted to less than 0.3% of the home’s value.
The central concern for the real estate industry was the recording of memoranda of these agreements on property titles. These filings acted as encumbrances, creating a significant cloud on title that could complicate or prevent critical transactions like sales, refinances, or equity access without the homeowner paying substantial termination penalties to MV Realty. In Oregon, 669 such active agreements were in place, potentially exposing affected homeowners to over $7.9 million in combined termination fees.
Under the terms of the settlement, MV Realty was required to fully release all 669 active agreements and associated title encumbrances no later than December 5, 2025. This critical deadline ensures that affected homeowners owe no further fees to the company and regain unrestricted control over listing and property transactions.
Appraisal Implications of Title Encumbrances
Clear and marketable title is fundamental to accurate residential appraisal practice and is a prerequisite for nearly all mortgage lending in the Portland metro area. The presence of an active, restrictive lien, particularly one rooted in a predatory agreement, directly impairs the marketability and financeability of a property, thus potentially diminishing its market value.
Appraisers are tasked with evaluating the specific bundle of rights being conveyed, most commonly the Fee Simple Estate. Encumbrances like the MV Realty memoranda, if flagged, required appraisers to note exceptions and contingencies in their reports, affecting assumptions about marketability and often leading to lender rejection of the collateral. The settlement resolves this issue for properties across our service area, including Clackamas, Multnomah, and Washington counties.
Verification of Unencumbered Status
With the mandated releases complete or imminent as of this posting date, these properties across Oregon now benefit from restored clear title. However, the onus is on transactional parties to confirm the resolution.
Lenders, REALTORS, estate planners, and attorneys handling sales, refinances, or equity transfers involving previously affected properties must perform due diligence to verify the official recording of the release documents through county records. Direct confirmation of the removal of the encumbrance from the county recorder’s official files is the only definitive proof that the title is clear.
Homeowners who previously signed these agreements are strongly advised to retain documentation of the settlement and monitor their title updates closely.
For a broader perspective on how sales volume and pricing are performing in the absence of artificial marketability barriers, refer to our most recent data-driven report, the Portland Region Q3 2025 Market Update.
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CODA
Are you an agent in Portland and wonder why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland Housing Bureau releases RFP for $180,000 in East Portland grants to strengthen nonprofit capacity for housing outreach, education, and resident support amid regional affordability challenges.
Up to two awards of $90,000 each will be made for an initial one-year term, with potential renewal based on performance and funding availability. Eligible applicants include registered 501(c)(3) nonprofits focused on East Portland; other community groups or coalitions may apply with a fiscal sponsor.
Funds offer flexible support for organizational strengthening and housing-related activities, such as staff salaries, community outreach, education on housing policies, resident engagement in planning processes, leadership training, strategic planning, and equipment needs. Large-scale capital projects, real estate development, and political activities are ineligible.
Proposals should align with organizational strengths and may incorporate connections to climate resilience or environmental justice. Applications require a brief organizational overview, fund use summary, timeline, budget, and assessment approach.
Applicants new to the WebGrants system must register a profile by December 21, 2025, to allow processing time, while full proposals are due December 29, 2025. Optional informational sessions via Zoom are scheduled for December 15 (10:00–11:00 AM) and December 18 (3:00–4:00 PM), 2025. Awards will be announced January 12, 2026, with contracts starting February 2, 2026.
Appraisal Implications
Initiatives like these grants aim to enhance nonprofit capacity for outreach and resource navigation in underserved areas of the Portland metro area. For appraisers, understanding community-driven efforts to address displacement risks and improve housing access provides valuable context when evaluating neighborhood stability and long-term affordability trends in eastside submarkets.
This funding complements broader challenges in activating affordable housing resources, as discussed in yesterday’s brief on the affordable housing paradox — where 1,863 income-restricted units remain vacant amid administrative and outreach hurdles.
Market Context
The Portland region continues to grapple with affordability pressures, particularly in areas with historic underinvestment. Community capacity building may help bridge gaps in resident education and engagement, supporting more effective utilization of existing housing programs without immediate large-scale construction.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland and wonder why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland’s inclusionary zoning is producing units, but 1,863 income-restricted apartments remain vacant amid funding cuts and administrative delays—creating measurable valuation risk for residential and multifamily professionals.
Empty interior of an income-restricted apartment unit in Portland, symbolizing the region’s persistent vacancies in affordable housing programs Via Canva Pro
Policy Wins Collide With Activation Barriers
Portland’s affordable housing programs are delivering a classic paradox: policy mechanisms are finally producing new income-restricted units, yet nearly 1,900 completed apartments—representing a 7.4% vacancy rate across the region’s 25,409 subsidized units—sit empty while homelessness continues to climb.
The city’s inclusionary zoning program, which requires or incentivizes developers to reserve a portion of new units for households earning 60% or less of area median income (AMI)—where the FY 2025 median family income for a 4-person household in the Portland-Vancouver-Hillsboro OR-WA MSA is $124,100—has shown measurable improvement in actual unit production after years of refinement. This is a hard-won policy success in a market that has long struggled to integrate affordability into private development.
These gains, however, are being undermined by systemic activation challenges. Home Forward, Multnomah County’s primary administrator of subsidized housing and the Housing Choice Voucher (Section 8) program, faces a $35 million budget shortfall that includes a $14 million cut in federal voucher funding. The agency has paused new voucher issuances, eliminated at least 12 positions, and extended waitlists that already see roughly seven applications for every opening.
Providers cite a combination of administrative delays, rising operational costs, higher post-pandemic eviction rates, and narrowing rent gaps (42% of metro units are now within 10% of market rent) as the main drivers of prolonged vacancies. As Reach Community Development’s executive director noted, “even affordable rents are too high” for many eligible households without deeper subsidies.
Mayor Keith Wilson has explicitly linked these activation failures to the region’s homelessness crisis. Although 890 of a targeted 1,500 new low-barrier shelter beds are now open, many operate at just over 50% occupancy—compared with 87% at existing 24-hour shelters—because permanent housing remains the preferred exit. With more than 7,500 individuals unsheltered in Multnomah County (up over 1,000 since January 2025) and monthly inflows of ~1,400 people outpacing permanent placements of ~1,100, the region continues to see a net increase in homelessness.
Appraisal Implications
These activation failures translate directly into valuation and underwriting risk for professionals across the Portland metro area.
Residential Properties
Inclusionary zoning covenants create deed-restricted comparables that must be segregated from market-rate sales. As the program matures, appraisers in Multnomah, Clackamas, Washington, Columbia, Yamhill, and Clark counties will see a growing volume of these restricted transactions, especially in newer condominium and mixed-use projects—though the highest concentration remains within the City of Portland’s jurisdiction in Multnomah County. With the Q3 2025 median price for detached single-family homes in the region at approximately $600,000—as noted in our Q3 2025 Portland region market update—the gap between market-rate ownership and income-restricted pricing remains stark.
Multifamily and Investment Properties
The 1,863 vacant income-restricted units create an immediate drag on potential gross income and stabilized net operating income (NOI). Projects financed through Low-Income Housing Tax Credits (LIHTC) or subject to inclusionary requirements now face extended lease-up periods—often months rather than weeks—due to public-agency bottlenecks. Recent FHFA increases to 2026 multifamily loan purchase caps may encourage new supply, but activation risks remain a key variable.
Appraisers using the income approach should give heightened scrutiny to:
Vacancy allowances (increase for policy-induced vacancy)
Capitalization rates (higher risk typically justifies higher cap rates)
Lenders and investors underwriting affordable or mixed-income developments must incorporate longer stabilization horizons and potential LIHTC compliance risks into their models.
Market Context
When finished apartments remain offline, the housing-homelessness pipeline stalls, forcing greater reliance on temporary shelter systems even as permanent supply begins to grow.
Resolving this paradox will require targeted investment in administrative capacity and deeper subsidy layers to match completed units with the households who need them most.
Sources & Further Reading
Nearly 1,900 affordable Portland apartments sit empty (OregonLive)
Portland’s Inclusionary Zoning Program Is Finally Performing (Sightline Institute)
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland and wonder why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland’s code now allows single-exit stairwell apartments, raising the maximum unit count on infill lots and posing a compliance challenge for Portland Certified Residential Appraisers.
Three-story, 16-unit apartment building on a 5,000 sq ft lot—an early example of the infill density now fully achievable in Portland’s RM1 and RM2 zones under current zoning and the 2025 single-exit stairwell provisions 11 NE 55th Ave, Portland, Oregon – December 2025 Photo: Abdur Abdul-Malik, Certified Residential Appraiser
Easing Regulatory Barriers to Mid-Rise Infill
The City of Portland’s Bureau of Development Services, in coordination with Portland Fire & Rescue, approved a final Building Code Guide (BCG 25–10) on October 22, 2025, that permits single-exit stairwells in certain apartment buildings up to four stories in height. This guide implements a provision already adopted within the 2025 Oregon Structural Specialty Code (OSSC), removing a significant regulatory barrier that often rendered mid-rise infill housing financially and physically impractical on constrained urban lots throughout the Portland metro area.
This code clarification aligns Portland with the practices of progressive code adopters, including Seattle and various international jurisdictions, which have successfully and safely utilized single-stair designs for decades. The change is particularly relevant for infill sites—common in Portland’s established neighborhoods—where lot width or depth previously made the mandatory two-stairwell design economically unfeasible.
The economic advantage is substantial: traditional two-stair designs can consume 13–16% of the total floor area for circulation (stairs and hallways). A single-stair “point access block” can reduce circulation space to as little as 6.5% of the floor area, effectively converting otherwise unusable common space into leasable or saleable residential square footage. The push to allow this type of construction illuminates the entangled intersection between safety, housing affordability, and building codes at a national level. This efficiency boost is key to making medium-density projects feasible in high-cost urban environments. The new allowance is expected to have a greater impact on Multi-Dwelling (RM) zones than on the R2.5–R20 zones, where unit counts are generally capped at six.
Appraisal Implications for Real Estate Valuation
The finalization of single-exit guidelines has direct implications for certified residential appraisers (CRs), lenders, and real estate professionals in the Portland region.
Multifamily Development and the CR 4-Unit Limit
The new guideline creates a direct compliance challenge for CRs. CRs are restricted to appraising residential properties containing four or fewer units.
The 16-unit apartment building at 11 NE 55th Ave provides a perfect case study: it is constructed on a 5,000 sq. ft. lot, which is a standard lot size for Portland. While this specific site is zoned CM2 (Commercial Mixed Use 2), it is a very common setup in transitional zones like RM1 or RM2 and makes for a warning of the complexities residential appraisers will now face on an increasing number of sites throughout the City of Portland. A comprehensive and thorough highest and best use analysis (H&BU) will be even more paramount for CRs going forward.
The Land Sale vs. Home Sale Trap (The H&BU Pitfall):
Here is what existed on the site prior:
Single-family residence formerly at 11 NE 55th Ave (CM2 zone) prior to demolition and redevelopment into 16-unit multifamily Portland, Oregon – circa 2019 (Google Street View archive) Photo: Google Street View (public domain)
Note the home to the right of the subject. That neighboring home has RM2 zoning and still exists to this day. For the sake of illustration, let’s pretend the subject itself was located in the same RM2 zone. (The problem would also exist if it were in the RM1 zone.) I have always been wary of appraising properties in RM1 and RM2 zones due to the potential of unit density exceeding my license scope. However, in some select areas, a careful highest and best use analysis shows four units or less is still the market preference, or perhaps the only options feasible. Constructing an apartment building like the subject in an RM1 or RM2 zone was more difficult prior to the recent zoning change. A residential appraiser viewing the subject’s original home could easily come to the conclusion that the H&BU is still residential, as that conforms to the next door property. However, the financial data proves the site’s H&BU shifted long ago:
Negative Value: The original house effectively had negative value, as the developer purchased the site for $650,000 in early 2024, intending only to demolish the structure and build up.
Land Value: The $650,000 purchase price was solely a land sale based on the potential to build high density—a potential maximized by the single-stair allowance.
The New H&BU: The resulting 16-unit asset, listed at over $3.3 million, confirms the H&BU is a multifamily property that requires a Certified General (CG) Appraiser.
Pro Forma Income: Because the building is new and actively offering rental concessions (e.g., free rent) to tenants, the listing’s financial figures are projected (pro forma). It has a Projected Gross Annual Income of $256,005 and a Pro Forma Cap Rate of 5.17%—financial metrics based on achieving full market rents and directly tied to the single-stair design’s efficiency. Appraising such a property requires a lease-up analysis and would necessitate a Certified General Appraiser to determine both the As-Is and As-Stabilized values.
Risk Area (RM1 & RM2): The greatest risk for CRs lies in Transitional Multi-Dwelling zones (like RM1 or RM2). These zones can get complicated quickly, and the single-stair allowance now pushes the practical development cap far beyond the CR’s 4-unit limit, even on small parcels.
Required Due Diligence: CRs must perform careful due diligence when analyzing the H&BU of transitional or infill parcels. If the H&BU conclusion is a multi-unit property exceeding four units, the assignment falls outside the scope of a CR license, and the assignment must be transferred to a Certified General Appraiser.
This apartment building on the street (made possible by the single-stair allowance) has now greatly complicated any future appraisals for the adjacent home. The adjacent home sits on a lot the same size (5,000 sq. ft.).
Adjacent single-family home on a matching 5,000 sq ft lot zoned RM2—identical in size to the 11 NE 55th Ave site now redeveloped with a three-story, 16-unit apartment building NE 55th Ave (North Tabor), Portland, Oregon – December 2025 Photo: Abdur Abdul-Malik, Certified Residential Appraiser
An appraisal on this home would now need to take into account the potential to remove the dwelling and place a 16-unit apartment building on the site. The apartment building next door, even though in a different zoning, proved that such a structure is physically possible on a 5,000 sq. ft. lot. Now, with the zoning law change, such a structure is also much more likely to be greenlit following a formal review by the planning department. Even if all the structures on this street were residential homes, a CR can no longer assume four units or less is the H&BU if the zoning is RM1 or RM2.
Density Rules Every Portland Appraiser Needs Tattooed on Their Forearm
In most of Portland’s multi-dwelling zones (RM1–RM4 and RX) there is no maximum density—only minimums. The City’s own table spells it out clearly:
Zone
Maximum Density
Minimum Density (base)
RM1
None
1 unit per 2,500 sf
RM2
None
1 unit per 1,450 sf
RM3
None
1 unit per 1,000 sf
RM4
None
1 unit per 1,000 sf
RX
None
1 unit per 500 sf
RMP
1 per 1,500 sf (bonus to 1 per 1,000 sf)
1 per 1,875 sf
Source: City of Portland Bureau of Development Services – Density and Lot Dimensions in Multi-Dwelling Zones (09/27/2024)
On a typical 5,000 sq ft lot with no overlays:
RM1 → minimum 2 units, no upper limit
RM2 → minimum 3–4 units, no upper limit
Highest-and-Best-Use Reality Check for Certified Residential Appraisers
Unless a site in RM1, RM2, RM3, RM4, or RX has obvious, insurmountable physical or regulatory constraints (steep topography, protected trees requiring preservation, environmental overlay zones, landslide hazard, historic designation, or similar), a credible H&BU analysis can no longer conclude that single-family, duplex, triplex, or fourplex development is the concluded use without first testing a multifamily pro forma that likely exceeds four units.
Doing so risks an incomplete analysis and, more critically, completing a valuation that falls outside the Certified Residential license scope.
Appraisers: be careful!
Land Value and Investment Properties
The zoning change also directly affects land value and the as-completed project feasibility by allowing for a more efficient and profitable building design. This local regulatory shift also aligns with supporting federal policy, such as the Federal Housing Finance Agency (FHFA) increasing the combined volume cap for Fannie Mae and Freddie Mac’s multifamily loan purchases to $176 billion for 2026.
Market Context
Portland continues to grapple with a housing shortage, making any code modification that reduces hard construction barriers on infill parcels a necessary and impactful step. The North Tabor neighborhood where this property is located is appealing for investors, characterized by an urban-suburban mix and a high proportion of renters. This demographic composition and investor demand underscores the high asking price for turnkey rental assets like the new construction apartment building in our case study.
For lenders, realtors, estate planners, and attorneys, it is crucial to recognize that the appraisal of these new single-stair buildings will require a deep understanding of the regulatory context. Appraisers must accurately reflect the specific size, unit count, and advanced fire-safety features required by the Building Code Guide 25–10 to ensure a credible valuation and appropriate comparable selection.
Sources & Further Reading
New Portland guidelines for single-stair apartment buildings: News
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland and wonder why appraisers always do “x”?
A homeowner, lawyer, or estate planner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland Appraisal Blog 
