Real Estate Investing in Molalla, Oregon (97038)
Should you buy in 97038 (Molalla, OR)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Molalla, OR (97038)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 97038 Molalla
Not every below-median market is a bargain. Molalla's 97038 ZIP sits at signals that favor experienced operators who can absorb the risk $499K pricing implies.
For an experienced owner, 97038 can be a an appealing option for hunting ground — but the discount at $499K reflects genuine risk that outside investors often underestimate.
ZIP 97038's metrics run below Clackamas County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Employment concentration in 97038 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategy in 97038 is an operator game, not a passive one. Meanwhile, entry prices of $499K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Molalla:
Property Strategy for 97038
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $424,478 | $1,800 | 3.1% | +4.2% | $212,239 |
| 3BR | $470,057 | $2,470 | 3.8% | +5.2% | $156,686 |
| 4BR | $547,969 | $2,900 | 3.8% | +5.1% | $136,992 |
| 5BR | $639,691 | — | — | +5.1% | $127,938 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 97038 Compare?
| Metric | 97038 | Molalla | Oregon |
|---|---|---|---|
| Home Value | $498,746 | $498,746 | $493,884 |
| 5-Year CAGR | 3.4% | 3.4% | 4.9% |
| Avg Rent | $1,859 | $1,859 | - |
| Cap Rate | 2.9% | 2.9% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 97038 (Molalla, OR). Anonymous, moderated, never written by AI.
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Property managers serving Clackamas County
Manage rentals here? List your business →Eagle Property Management is Portland's premier property management team, serving Portland and Lake Oswego, OR. summary from their website
Illume Property Management and North Coast Property Management eliminate the stress of property ownership and remodeling in the Portland Metro Area and on the Oregon Coast. summary from their website
Real Property Management helps protect investments, provides professional service, minimizes costs, and maximizes income for property owners. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $498,746 |
| Monthly Rent | $1,859 |
| Price-to-Rent | 22.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.5% |
| Cap Rate | 2.9% |
| 5-Year IRR | 6.3% |
📈 Home Appreciation
| 1-Year | +1.7% ▲ |
| 3-Year CAGR | +1.9% ▲ |
| 5-Year CAGR | +3.4% ▲ |
| 10-Year CAGR | +6.2% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 97038
Population: 17,100
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 97038
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
What monthly rent should investors expect in Molalla, OR?
Rental rates in Molalla, OR average $1,859/mo. Tenant demand and $499K home values make the yield look reasonable by investor standards.
How expensive is real estate in Molalla, OR?
Median home price in Molalla, OR is near $499K, with a 5-year CAGR of 0.0%. Prices have been reliable and supportive of buy-and-hold strategies.
Should investors consider Molalla, OR?
With a 3.0/5 investability score, Molalla, OR ranks as a solid market for rental property investors. Median prices of $499K and rents of $1,859/mo drive the underlying numbers.
What is the renter demographic in Molalla, OR?
Tenant quality in Molalla, OR ranks as solid. Landlords generally report stable occupancy at market rents of $1,859/mo.
What kind of vacancy should I budget for in Molalla, OR?
Occupancy in Molalla, OR runs predictable with elevated vacancy. Well-priced units at $1,859/mo lease on reasonable timelines.
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