Portland Real Estate Supplemental Appraisal Brief – Sunday, November 30, 2025: Oregon vs. Washington Rent Caps for Income Properties

Oregon vs Washington rent cap and relocation rules create sharply different risk profiles for 1–4 unit (conventional) and 5+ unit (commercial) investors in the Portland and Vancouver metro areas.

Oregon State Capitol vs. Washington State Capitol illustrating differing rent cap laws for Portland and Vancouver metro income property investors
Via Wikimedia Commons

Why This Matters

In the Portland–Vancouver metro, rent regulations directly shape cash‑flow stability, refinance eligibility, and valuation. Appraisers rely on predictable rental streams for income approach comparables, while lenders model risk differently across state lines. For investors, the 4‑to‑5 unit threshold is pivotal: properties with 1–4 units typically qualify for conventional Fannie Mae/Freddie Mac financing, while 5+ unit buildings fall into commercial lending. Because rent‑cap rules and relocation‑assistance exposure diverge sharply at this threshold, understanding the cross‑border distinctions is critical before acquiring or refinancing multifamily assets.

Oregon Statewide Framework (ORS Chapter 90, SB 611)

  • No rent increase permitted during the first 12 months of tenancy
  • Cap: 7% + CPI (West Region), maximum 10% annually
  • Notice: 90‑day written notice required for any increase
  • Relocation assistance: applies only if landlord owns 5+ units statewide
    – One month’s rent paid to tenant for no‑cause terminations (ORS 90.427)
  • Exemption: units with certificates of occupancy issued within the prior 15 years

Portland City‑Specific Rules (PCC 30.01.085 – effective Jan 1, 2025)

  • Applies regardless of landlord unit count
  • Portland City‑Specific Rules (PCC 30.01.085 – effective Jan 1, 2025)
  • Applies regardless of landlord unit count
  • Any increase ≥5% in a rolling 12‑month period requires 90‑day notice
  • Increases ≥10% give tenants the right to terminate with reduced notice and receive mandatory relocation assistance
    – $2,900 studio/SRO
    – $3,300 1‑bed
    – $4,200 2‑bed
    – $4,500 3+ bed
  • Exemptions require advance approval from the Portland Housing Bureau (e.g., week‑to‑week tenancies, owner‑occupied duplexes)
  • Enforcement: non‑compliant landlords face liability for up to 3× monthly rent, damages, and attorney fees

Washington Statewide Stabilization (HB 1217 – signed May 2025)

  • No rent increase in the first 12 months
  • Cap: lower of 7% + CPI or 10% through Dec 31, 2025
  • Manufactured homes: 5% cap
  • Notice: 90 days for residential units; 180 days for mobile‑home parks
  • Relocation assistance: no statewide mandate (though RCW 59.18.440 allows local governments to adopt programs)
  • Exemptions:
    – New construction (<12 years old)
    – Nonprofit affordable housing
    – Owner‑occupied 2–4 plexes
  • Enforcement: Washington Attorney General; penalties up to $7,500 per violation. August 2025 saw inaugural fines against landlords for unlawful increases.

Key Investor Takeaways

  • 1–4 unit owners: favorable treatment in both states; no mandatory relocation payments (except inside Portland city limits, where PCC 30.01.085 applies)
  • 5+ unit owners: Oregon relocation exposure (one month’s rent on no‑cause moves); Portland relocation exposure even for small landlords if increases ≥10%; Washington no statewide relocation mandate, creating a material cash‑flow difference across the Columbia River

Comparison Table

IssueOregon StatewidePortland (overlay)Wash. HB 1217Impact 1–4 UnitsImpact 5+ Units
First-year increase allowed?NoNoNoSame both statesSame both states
Rent cap (2025)7% + CPI ≤10%Same statewide cap≤10% (5% Mobile/
Manufact.
parks)		Effectively identicalEffectively identical
Relocation assistance required?Only if landlord owns 5+ unitsYes on ≥10% increase or qualifying no-causeNone statewidePortland exceptionOregon yes / WA no
New build exempt15 yearsSame12 yearsWA slightly shorterWA slightly shorter
Owner-occupied 2–4 plex exempt?NoPossible with PHB approvalYesWA more favorableWA more favorable

Regional Implications for Appraisals

  • Both states prohibit first‑year increases and require ample notice, promoting predictability in rental streams.
  • Oregon’s relocation rules (especially Portland’s) stabilize occupancy in high‑turnover areas, dampening vacancy risk.
  • Washington’s broader exemptions favor newer developments, potentially accelerating value growth in Clark County compared to Oregon’s focus on small‑landlord relief.
  • Enforcement differences matter: Oregon emphasizes tenant remedies via damages, while Washington’s AG fines signal robust compliance.

Further Reading & Resources

  • Oregon Revised Statutes Chapter 90 – Residential Landlord and Tenant: 2023 Edition
  • ORS 90.427 – Termination of tenancy without tenant cause (relocation assistance): ORS 90.427
  • Oregon Law Help – Eviction & Termination Notices: Guide
  • Portland Renter Additional Protections (City Code 30.01.085): Official City Page
  • Portland Mandatory Relocation Assistance Brochure (PDF): Download
  • Portland Housing Bureau Relocation Rules & Exemption Form: HOU-3.05
  • Washington HB 1217 – Rent Stabilization: 2025 legislation
  • Washington Residential Landlord-Tenant Act: RCW 59.18
  • Washington Attorney General: File a Tenant Complaint

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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.

Question: Do you think other states will follow Oregon’s and Washington’s rent control laws?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

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 Real Estate Weekly Appraisal Digest – Nov 24th – Nov 29th, 2025: Rent Caps, Price Trends & Regulation Updates

As the Portland metro area navigates a shortened week of real estate developments, themes of cautious optimism in homebuying blend with tightening rental regulations and professional safeguards against bias. First-time buyers are edging back into the market, even as confidence dips slightly, while Oregon’s actions on rent pricing and unspent funds signal a push toward affordability. In the Portland–Vancouver region, these shifts underscore the need for appraisers and other real estate professionals to stay abreast of changes and the evolving valuation landscape.

Table of Contents

Monday, November 24: NAR RCI Shows Rising First-Time Buyers

The National Association of REALTORS®’ October 2025 REALTORS® Confidence Index reveals a notable uptick in first-time buyer activity across the Portland metro area, capturing 32% of transactions amid modestly lower interest rates and expanding inventory. This marks a shift from prior months, even as overall REALTORS® confidence tempered, with just 17% anticipating higher buyer traffic. Median days on market held steady at 34, while cash sales accounted for 29% of deals, homes drew an average of 2.1 offers, and 19% closed above list price.

For appraisers in the Portland region, these patterns point to steadier comparable sales pools, though they also flag potential risks from waived contingencies—19% of buyers skipped appraisals—and a strong tilt toward suburban purchases at 82%. This segmentation demands careful reporting, especially in areas like Multnomah County and Vancouver, WA, where defensible adjustments for local preferences become essential. The week’s buyer momentum sets a grounded tone, reminding professionals to measure market value without injecting undue optimism.

Tuesday, November 25: Oregon Joins $7 Million Settlement with Greystar

Oregon joined eight other states in proposing a $7 million settlement against Greystar Management Services for alleged misuse of RealPage software in coordinating rent hikes, affecting roughly 19,000 Portland apartments—equivalent to 10% of the region’s multifamily stock. If finalized, the agreement would prohibit Greystar from exchanging non-public rent data or following RealPage’s algorithmic suggestions, echoing a parallel U.S. Department of Justice decree limiting the software’s practices for three years. Such curbs could ease rental pressures starting in 2026, with appraisers watching for cap rate shifts in larger apartment complexes and steadier gross revenue forecasts.

In the Portland metro, this intervention highlights ongoing scrutiny of tech-driven pricing, potentially softening rents by 5–8% and delivering $110–$176 in monthly relief to affected households—translating to $4,000–$10,600 over three to five years. For income property valuations, the changes reinforce the importance of conservative income projections, particularly for smaller multifamily assets where GRMs might stabilize. This development folds into broader affordability efforts, bridging national antitrust moves with local tenant protections.

Wednesday, November 26: Oregon’s New 7-Hour Anti-Bias CE Requirement

Map of Oregon showing all counties and a banner at the top announcing new continuing education requirement in anti-bias training for appraisers.

Starting January 1, 2026, Oregon mandates a one-time 7-hour continuing education course on Valuation Bias and Fair Housing for all licensed appraisers, followed by at least 4 hours in every two-year renewal cycle—without expanding the existing 28-hour total. Codified in OAR 161-010-0010, the requirement targets unconscious biases in comp selection, adjustments, and reporting to uphold USPAP’s call for credible, impartial analyses. In the Portland metro, this will likely yield more transparent reports, aiding homeowners, realtors, attorneys, and lenders in reviewing decisions on over-improved properties or reconsiderations of value.

Appraisers don’t generate market value—they document it—and this training bolsters accountability by encouraging explicit justification of valuation choices. For regional stakeholders, expect enhanced scrutiny on equitable practices, especially in diverse neighborhoods where bias could potentially skew outcomes. The measure ensures Portland professionals are in compliance with national appraiser ethical standards, fostering trust in an era of heightened regulatory focus.

Thursday, November 27: $21 Million in Unspent Rental Fees Discovered

A Portland city audit uncovered $21 million in uncollected or unallocated rental-registry fees earmarked for emergency aid and eviction prevention, despite monthly filings of 800 to 1,200 cases in Multnomah County. The shortfall stems from tracking lapses and delays, overlapping with the resignation of Portland Housing Bureau Director Helmi Hisserich, who departed with a $241,000 severance after administrative leave. Redeploying these funds could bolster tenant supports, indirectly stabilizing occupancy in rental properties across the Portland region.

For single- to four-unit residential appraisals, the revelation carries little direct valuation impact, though it amplifies persistent affordability strains. In multifamily commercial contexts, however, improved assistance might lower vacancy risks and lift net operating income, supporting firmer asset values. This episode underscores administrative hurdles in housing policy, urging appraisers to factor in such externalities when projecting long-term stability.

Friday, November 28: FHFA Q3 2025 House Price Index Trends

The Federal Housing Finance Agency’s Q3 2025 House Price Index reports a subdued national uptick of 0.2% quarter-over-quarter and 2.2% year-over-year, while Oregon lagged with just 0.31% annual growth and a –0.16% quarterly dip, placing 45th among states. Within the Portland–Vancouver–Hillsboro MSA—spanning Clackamas, Columbia, Multnomah, Washington, and Yamhill counties in Oregon, plus Clark and Skamania in Washington—the purchase-only index edged up 0.16% quarterly and 1.51% annually, buoyed by Clark County’s momentum despite a –0.36% all-transactions quarterly pullback. Local medians (calculated by PortlandAppraisalBlog in the six-county Oregon-only region) held flat at $600,000, with unchanged sales volume and days on market climbing 13% to 52, mirroring the index’s conservative trajectory.

This repeat-sales methodology draws on conforming mortgages from Fannie Mae and Freddie Mac, integrating appraised values from refinances to ground the data—affirming appraisers’ pivotal role in shaping reliable benchmarks. In the Portland metro, the modest gains advocate for restrained adjustments, aligning with extended market times and steady comps. The report reinforces a narrative of equilibrium, where national moderation meets regional resilience.

Saturday, November 29: Oregon Sets 2026 Rent Cap at 9.5%

Oregon’s 2026 rent increase limit stands at 9.5% for most residential rentals in the Portland metro, effective January 1 and pegged as the lower of 10% or 7% plus the Consumer Price Index for All Urban Consumers, West Region (All Items) from the prior year—easing from 10.0% in 2025. Governed by ORS 90.323, the cap covers single-family homes, apartments, and smaller multifamily units, exempting new leases, fixed terms, and larger complexes over 30 units (capped at 6% under ORS 90.600). Current medians hover at $1,987 for two-bedrooms per RentCafe and $1,772 overall via Zillow, with neighborhoods ranging $1,800–$2,400.

This predictability aids appraisers in forecasting income for rental conversions and multifamily holdings, benefiting homeowners, investors, realtors, and lenders alike. In a demand-heavy market, the adjustment tempers escalation while syncing with inflation, potentially steadying GRMs and occupancy assumptions. It caps a week of rental-focused reforms, offering a clearer lens for valuation in Oregon’s urban core.

Week’s Blog Posts & Further Reading Links

Closing Remarks

This week’s briefs weave a tapestry of measured progress in the Portland real estate landscape—from invigorated first-time buyer shares to regulatory reins on rents and pricing algorithms. Rental affordability takes center stage with settlements, unspent funds, and a dialed-back cap, potentially easing pressures on multifamily valuations while the FHFA index signals subdued but steady price growth in the Portland–Vancouver MSA. Layered atop new anti-bias training, these elements highlight an industry honing its precision amid national headwinds, ensuring appraisals reflect a market that’s resilient yet restrained.

For professionals and stakeholders, the convergence underscores the value of localized insights: suburban demand bolsters entry-level comps, while policy tweaks demand vigilant income modeling. As 2025 draws to a close, the region positions itself for 2026 with tools for equitable, data-driven decisions.

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.

Question: Which story interested you the most?

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 Real Estate Appraisal Brief – Sunday, November 30, 2025: Oregon Rent Laws vs. Portland’s Tenant Protections

Oregon’s 9.5% rent cap for 2026 combines with Portland’s relocation assistance rules, creating distinct valuation considerations for rental properties across the metro area.

Via Wikimedia Commons

Oregon’s statewide rent stabilization framework under the Residential Landlord and Tenant Act provides a uniform baseline for rental increases and evictions across the state, including the Portland metro area. Oregon was the first U.S. state to enact comprehensive statewide rent control in 2019 (via Senate Bill 608), followed by California later that year (via AB 1482) and Washington in May 2025 (via HB 1217). These statutes establish annual limits on rent increases for most residential properties, with exemptions for new construction and certain subsidized housing. However, within the city limits of Portland, local ordinances add layers of tenant protections that require relocation assistance for certain terminations and rent hikes. As a certified residential appraiser serving homeowners, lenders, realtors, estate planners, and attorneys in the region, understanding these distinctions is crucial for accurate property valuations, especially for income-producing rentals where regulatory constraints directly influence projected cash flows and market discounts.

Key provisions include rent increase limits under ORS 90.323 and their annual calculation under ORS 90.324.

Statewide Rent Stabilization and Eviction Basics

Under ORS 90.323, landlords cannot raise rent during the first year of tenancy or more than once every 12 months thereafter. The maximum allowable increase for calendar year 2026 is capped at 9.5%. Violations expose landlords to liability for three months’ rent plus actual damages.

Just-cause eviction requirements under ORS 90.427 prohibit no-cause terminations after the first year. Qualifying landlord reasons (major remodel, owner/family move-in, etc.) still require proper notice and, in some cases, one month’s rent as assistance. Exemptions from these protections include units less than 15 years old from the date of the certificate of occupancy, federally subsidized or regulated affordable housing (where the tenant’s portion does not rise or the increase is program-mandated), owner-occupied duplexes or triplexes (where the landlord resides in one unit), and certain short-term rentals.

Portland’s Local Overlay: Enhanced Relocation Assistance

Portland builds on these state protections through City Code 30.01.085 – the Renter Additional Protections ordinance. The city applies Oregon’s statewide cap but adds relocation assistance obligations when rent increases reach 10% or more (for units otherwise exempt from the statewide cap, such as newer construction or subsidized housing). Relocation assistance is also required for:

  • Non-renewal of fixed-term leases
  • Qualifying landlord reasons under state law
  • Substantial changes to lease terms beyond rent or utilities

Payments (due 45 days before termination or within 31 days of tenant request) are scaled by unit size:

  • $2,900 (studio/SRO)
  • $3,300 (1-bedroom)
  • $4,200 (2-bedroom)
  • $4,500+ (3+ bedrooms)

Landlords must file exemption forms with the Portland Housing Bureau when applicable and notify the Bureau of payments within 30 days.

Valuation Implications for the Portland Metro Area

For estate planners and attorneys handling inherited rentals, these combined rules often lock in below-market tenancies. Homeowners converting properties to rentals must project income conservatively. Realtors listing income properties typically disclose scheduled rents via RMLS. A listed property with units significantly below market rent levels may receive low offers and usually sells at a substantial discount.

Lenders benefit from reduced turnover risk but must recognize higher operating costs inside Portland city limits. For appraisers, the dual framework means statewide rent caps set the ceiling, while Portland’s relocation obligations add another layer of financial consideration.

Geographic Scope

Oregon’s statewide rules apply in the Portland Region (Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill Counties). Portland’s relocation overlay is city-specific. Properties in the Vancouver Region (Clark, Cowlitz, Klickitat, and Skamania Counties) fall under Washington’s separate statewide stabilization law (enacted May 2025), which exempts new construction for 10 years and caps annual increases at 7% + inflation, not to exceed 10%.

Further Reading & Resources

  • Oregon Residential Landlord and Tenant Act (full chapter): ORS Chapter 90
  • Rent Increase Limits & Notice Requirements: ORS 90.323
  • Annual Rent Cap Calculation: ORS 90.324
  • Termination of Tenancy without Tenant Cause: ORS 90.427
  • Portland Renter Additional Protections (City Code 30.01.085): Official City Page
  • Portland Mandatory Relocation Assistance Brochure (PDF): Download
  • Portland Housing Bureau Relocation Rules & Exemption Form: HOU-3.05
  • Oregon Law Help – Eviction & Termination Notices: Guide
  • Oregon Senate Bill 608: PDF
  • California AB 1482
  • Washington HB 1217

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.

Question: Do you think other cities in Oregon will add relocation assistance provisions?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

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 Real Estate Appraisal Brief – Saturday, November 29, 2025: Oregon Sets 2026 Rent Cap at 9.5%

Oregon’s 2026 rent cap is set at 9.5%. See the key details and implications of this policy for Portland metro rental valuations, property owners, and investment strategies.

Portland appraisal brief graphic for Oregon 2026 9.5% rent cap official announcement.

The Oregon Department of Administrative Services (DAS) has released the official rent stabilization percentages for 2026, offering clarity for landlords, tenants, and housing professionals statewide. As a certified residential appraiser serving the Portland metro area, I track these updates closely because they influence rental market dynamics, which in turn affect property valuations for homeowners, lenders, realtors, estate planners, and attorneys.

This annual adjustment, governed by ORS 90.323 (maximum rent increase) and ORS 90.324 (calculation and publication), ensures rent increases align with inflation while offering predictability in a volatile housing market. Published on September 30, 2025, the announcement ties directly to the state’s rent control measures enacted to protect tenants from excessive hikes.

For most residential tenancies in the Portland region, the maximum allowable rent increase will be 9.5% starting January 1, 2026. This figure represents the lesser of 10% or 7% plus the Consumer Price Index for All Urban Consumers (CPI‑U) for the West Region, All Items, based on data from the previous 12 months. The calculation reflects a measured response to rising living costs, down slightly from the 10.0% cap in 2025.

Key Details on the 2026 Rent Cap

Understanding the nuances of this cap is essential for anyone involved in residential leasing or valuation in Oregon. The 9.5% limit applies broadly to tenancies under ORS 90.323, which covers most single‑family homes, apartments, and multifamily units in the region. Landlords must provide at least 90 days’ written notice for any increase up to this threshold, and the cap applies per 12-month period and increases may only be given once in any 12-month period.

Exemptions and special cases:

  • Smaller facilities (≤30 spaces): Manufactured dwelling parks or marinas follow the same formula—10% or 7% + CPI (9.5% in 2026).
  • Larger facilities (>30 spaces): Parks or marinas face a stricter 6% maximum increase under ORS 90.600.
  • Exclusions: New tenancies in the first year, fixed‑term leases without renewal, and exempt properties (e.g., subsidized housing). Utilities and fees may rise separately from base rent.

These provisions help maintain stability in the Portland metro area’s rental landscape, where median asking rents have hovered near $1,987 for a two‑bedroom unit according to RentCafe’s Portland rental market report (Nov 2025). Zillow places the overall average asking rent across unit types at $1,772 (Zillow Portland Rental Market; snapshot date 11/28/2025). Neighborhood‑level data shows two‑bedroom rents ranging from $1,800 to $2,400, underscoring the variability across the metro.

For appraisers, knowing the precise rent cap helps model the timeline required to bring a property or multifamily project back to market rents, especially when current leases are below prevailing rates. This allows for more accurate income projections.

Implications for Portland Metro Property Owners and Professionals

  • Homeowners: Must factor the 9.5% ceiling into rental conversion ROI, especially when evaluating single‑family properties for lease. The cap limits upside potential in a demand‑heavy market and affects long‑term income projections.
  • Realtors: Benefit from being able to project realistic rental growth figures in listings, particularly for multifamily properties (2+ units). The cap provides a clear ceiling for annual rent increases, which helps set buyer expectations and avoid overpromising future income.
  • Lenders: Gain greater clarity into a property’s income potential, allowing for more accurate underwriting and valuation.
  • Investors: Stay aligned with prevailing market rates while complying with legal pacing. For multifamily portfolios, knowing the exact rent cap helps plan staggered increases and avoid underperformance due to below-market rents.

Sources & Further Reading

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.

Question: Do you think the annual cap will ever drop significantly, or will persistent inflation keep the annual increase at about 10%?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

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 Real Estate Appraisal Brief – Friday, November 28, 2025: FHFA Q3 2025 House Price Index: National Trends, Oregon Context, and the Role of Appraisers

FHFA Q3 2025 HPI: U.S. +2.2% YoY, Oregon +0.31%, Portland MSA +1.51% — appraisal insights and practical implications for Portland appraisers and lenders.

National Overview & Oregon Statewide Performance

On November 25th, the Federal Housing Finance Agency (FHFA) released its Q3 2025 House Price Index (HPI). Nationally, home prices rose 0.2% quarter‑over‑quarter, and 2.2% year‑over‑year, reflecting a cooling but still positive trajectory across most regions.

Oregon posted +0.31% annual appreciation, ranking 45th nationally, with a –0.16% quarterly decline. These subdued figures mirror the broader West Coast trend: Washington registered +1.37% YoY, while California slipped –0.62% YoY. Oregon’s modest growth reflects a market in balance—neither surging nor contracting sharply.

Map showing Four-Quarter House Price Change by State. Source: FHFA

Portland-Vancouver-Hillsboro MSA

In the “Purchase-only” FHFA index, the seven‑county Portland‑Vancouver‑Hillsboro MSA outperformed the statewide average slightly, recording +0.16% quarterly growth and +1.51% annual appreciation (” Seasonally Adjusted, Nominal” category). This MSA includes:

  • Oregon counties: Clackamas, Columbia, Multnomah, Washington, and Yamhill.
  • Washington counties: Clark and Skamania.

The inclusion of Clark County (Vancouver metro) is significant. Its size and activity often moderate or amplify Oregon‑centric trends, making the FHFA MSA lens broader than the Oregon‑only focus used in our local reporting.

In the “All-transactions” FHFA index, the values are similar but slightly different, recording -0.36% quarterly decline and +1.91% annual appreciation. This places the Portland‑Vancouver‑Hillsboro MSA 167th among all reporting MSAs.

Comparison with Our Six-County Oregon Focus

In our Q3 2025 Portland region market update (covering Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill), we noted:

  • Median closed price flat at $600,000.
  • Cumulative days on market up to 52 (a 13%+ increase).
  • Sales volume essentially unchanged.

The FHFA’s +1.51% YoY for the seven‑county MSA aligns directionally with this stability but reflects slightly stronger performance due to Clark County’s contribution. When Clark and Skamania are excluded, the Oregon counties track closely with our reported flat medians and lengthening market times.

Methodology Matters: How FHFA Builds the HPI

The FHFA HPI is not just another dataset—it’s one of the most authoritative measures of U.S. housing trends. Here’s how it works:

  • Repeat-Sales Index: FHFA tracks the same property across multiple transactions to measure price changes over time.
  • Purchase Transactions: Use the sales price recorded in the mortgage data.
  • Refinance Transactions: Use the appraised value reported at the time of refinance (if an appraisal was ordered). Automated Valuation Models (AVMs) are not used.
  • Coverage: Only conforming conventional mortgages purchased or guaranteed by Fannie Mae and Freddie Mac are included.
  • New Construction: A new home enters the dataset when financed with a conforming mortgage, but it only contributes to the repeat-sales index once a second transaction occurs (sale or refinance).

This methodology ensures consistency and reliability, but it also means the index can lag in capturing brand‑new construction markets.

A Shoutout to Appraisers

Appraisers play a critical role in the FHFA dataset. Every time a refinance transaction includes an appraisal, that value becomes part of the HPI’s foundation. In other words:

  • Appraisal values anchor the index when no new sale price exists.
  • Consistency in appraisal practice ensures the HPI remains credible and defensible.
  • Local expertise matters: Appraisers’ ability to interpret market conditions, select comps, and apply adjustments directly influences the quality of the data feeding into national housing benchmarks.

Without appraisers, the FHFA’s “all‑transactions” index would be incomplete. Their work provides the bridge between raw market activity and standardized national reporting.

Appraisal Implications

Residential Valuations (1–4 Units):

  • Within Oregon counties, the FHFA’s +0.16% quarterly change supports only minimal positive time adjustments in paired‑sales analysis.
  • Of course, submarkets and particular neighborhoods may diverge from the broader trend. Appraisers must carefully define the competitive submarket for each property and measure market‑condition changes within that context.
  • Flat medians and longer days on market suggest no broad market‑condition adjustments are warranted for most single‑family assignments, but localized dynamics can still justify nuanced treatment.

Cross‑Border and Portfolio Work:

  • For assignments involving Clark or Skamania counties, or when lenders request regional context, the FHFA MSA index provides an authoritative benchmark.
  • The modest +1.51% annual growth reinforces conservative expectations for refinance, purchase, and estate‑planning valuations across the full seven‑county footprint.

Why This Matters

Homeowners, lenders, realtors, estate planners, and attorneys benefit from seeing both perspectives:

  • Oregon‑only trends (flat medians, longer marketing times)
  • FHFA’s broader MSA view (slightly stronger due to Clark County)

Together, they provide a fuller picture of market stability and cross‑border dynamics in the Portland metro.

Frequently Asked Questions (FAQ)

What is the FHFA House Price Index (HPI)?

The FHFA HPI is a repeat‑sales index that measures changes in single‑family home values using data from Fannie Mae and Freddie Mac mortgages. It tracks the same property across multiple transactions to calculate price changes over time.

Does the HPI measure home prices directly?

No. The HPI does not report the median or average home price in dollars. Instead, it measures the percentage change in value between two transactions of the same property.

  • Example: If a home sold for $300,000 in 2015 and then $360,000 in 2025, the HPI records a 20% increase.
  • The index is built entirely from these changes, not from raw price levels. This makes the HPI excellent for tracking market movement, while MLS data is better for reporting actual price levels.

How does the repeat‑sales methodology work?

  • The index only includes properties with at least two transactions (purchase or refinance).
  • It measures the change in value between those two points, not the absolute level of prices.
  • This approach reduces noise from property differences and focuses on market movement.

What about new construction?

  • A new construction sale enters the dataset when financed with a conforming conventional mortgage.
  • However, it does not contribute to the repeat‑sales index until a subsequent transaction occurs (another sale or a refinance with an appraisal).
  • In other words, the first sale is logged, but the property only becomes “active” in the index once there’s a second data point.

What are the implications of this approach?

  • Coverage bias: The HPI does not immediately reflect brand‑new construction markets.
  • Lag effect: It takes time for new construction to show up in the index, often when owners refinance or resell.
  • Complementary data: FHFA also publishes purchase‑only indices (sales prices only) and expanded‑data indices (including FHA and county recorder data) to capture broader market activity.

Do refinances count in the FHFA HPI?

Yes. When a refinance includes an appraisal, the appraised value is used as the second transaction point. Automated Valuation Models (AVMs) are not used. This makes appraisers’ work central to the dataset.

Which counties are included in the Portland‑Vancouver‑Hillsboro MSA?

The FHFA defines the Portland MSA as seven counties:

  • Oregon: Clackamas, Columbia, Multnomah, Washington, Yamhill
  • Washington: Clark, Skamania

This differs from our six‑county Oregon‑only focus, which includes Hood River but excludes Clark and Skamania.

How does FHFA data differ from RMLS or local MLS data?

FHFA data is based on conforming conventional mortgage transactions purchased or guaranteed by Fannie Mae and Freddie Mac. It provides a broad index of price changes, useful for regional benchmarking.

By contrast, RMLS (and other local MLS systems) reflect all listing and sales activity, regardless of financing type. This includes transactions financed with FHA, VA, jumbo loans, private financing, and even cash sales. RMLS also reports granular metrics such as median prices, days on market, and sales volume.

👉 In short: FHFA offers a standardized, mortgage‑based view of price movement, while RMLS captures the full spectrum of market activity, making it indispensable for appraisers and analysts who need transaction‑level detail.

Sources & Further Reading

  • FHFA House Price Index Quarterly Report 2025Q3 (full report)
  • FHA All Transactions Quarterly Tables (Q3 2025)

For current market context on inventory and pricing trends in the Portland region, see our Q3 2025 Market Update.

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Question: Do you think Q4 2025 will be flat in Oregon, or will see some significant price movement?

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