1031 Exchange in Albany Lebanon MSA
The Albany-Lebanon MSA offers stable 1031 exchange opportunities with cap rates around 5.5-6.5%, low property taxes at 0.82%, strong manufacturing employment, and median home prices of $470,000 in Oregon's Willamette Valley.
Population
131,496
Key Industries
Manufacturing, Agriculture, Healthcare
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.82%
Assessment Method
Assessed Value (Oregon Property Tax System)
MSA rate (0.82%) vs State average (0.87%)
-6% below state average, -20% below national average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Recording fees and document recording tax apply
Local Tax Incentives
Opportunity Zone Investment
Tax deferral and potential exclusion for investments in designated opportunity zones
Eligibility: Properties located in designated Oregon Opportunity Zones
Enterprise Zone Benefits
Property tax exemptions for qualifying business investments
Eligibility: New manufacturing, processing, or research and development facilities
Opportunity Zones
Number of Zones
2
Key Locations
- Albany Downtown
- Lebanon
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
131,496
Growth: +0.8% annually
Median Income
$73,809
Unemployment
4.2%
Job Growth
+1.5% annually
Economic Drivers
Market Trends
Median Home Price
$470,000
Average Rent
$1,800/mo
Cap Rates
5.5-6.5%
Demographics
Median Age
42.1 years
Bachelor's Degree+
28.4%
Owner Occupied
68.7%
Property Type Analysis
Investment opportunities by asset class
Single-Family Rental
Primary investment opportunity with stable demand from manufacturing workers, families, and government employees.
Market Metrics
- Cap Rates: 5.8%
- Vacancy Trends: Low vacancy around 4-6% due to stable employment base and limited rental supply
- Demand Forecast: Steady demand supported by manufacturing employment and family-friendly environment
Risk Factors
- Car-dependent lifestyle limiting tenant pool
- Economic dependence on manufacturing sector
- Limited population growth
- Competition from homeownership market
Opportunities
- Stable manufacturing employment base
- Lower property taxes than most Oregon counties
- Central Willamette Valley location
- Opportunity zone benefits in select areas
Multifamily
Limited opportunities with steady demand from young professionals and manufacturing workers.
Market Metrics
- Cap Rates: 6.2%
- Vacancy Trends: Moderate vacancy around 6-8% with seasonal variations
- Demand Forecast: Stable demand from workforce housing needs and young professionals
Risk Factors
- Limited multifamily inventory
- Car-dependent market reducing urban appeal
- Competition from affordable single-family homes
- Smaller market size limiting tenant pool
Opportunities
- Workforce housing demand
- Limited new multifamily construction
- Proximity to major employment centers
- Lower operating costs than urban markets
Industrial
Strong opportunities supported by rare metals manufacturing and agricultural processing sectors.
Market Metrics
- Cap Rates: 6.8%
- Vacancy Trends: Low industrial vacancy around 3-5% due to strong manufacturing base
- Demand Forecast: Continued demand from rare metals industry and agricultural processing
Risk Factors
- Dependence on specific industries
- Environmental regulations for manufacturing
- Limited expansion land availability
- Transportation infrastructure constraints
Opportunities
- Wah Chang Corporation and rare metals industry
- Agricultural processing and storage needs
- Strategic Willamette Valley location
- Lower industrial land costs than Portland area
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Albany
Historic downtown core with county government, revitalization efforts, and opportunity zone benefits
Investment Thesis
Stable rental demand from government workers and downtown employees, opportunity zone benefits, and ongoing revitalization, though limited urban amenities compared to larger cities.
Median Price
$425,000
Price Growth
+7.2% YoY
Rental Yield
6.1%
Days on Market
48 days
Key Highlights
Development Pipeline
Downtown revitalization projects, historic building conversions, and waterfront development along Willamette River
North Albany
Newer residential area with family-friendly neighborhoods and proximity to employment centers
Investment Thesis
Strong family rental demand, newer housing stock, and proximity to manufacturing employment, though higher entry costs and suburban competition.
Median Price
$540,000
Price Growth
+8.0% YoY
Rental Yield
5.4%
Days on Market
42 days
Key Highlights
Development Pipeline
Continued residential development, new subdivisions, and infrastructure improvements
Lebanon
Secondary city with affordable housing options and proximity to recreational areas
Investment Thesis
More affordable entry points with stable employment from local industries and outdoor recreation appeal, though smaller rental market and limited amenities.
Median Price
$385,000
Price Growth
+6.8% YoY
Rental Yield
6.8%
Days on Market
62 days
Key Highlights
Development Pipeline
Limited new development, focus on infill and renovation projects
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Frequently Asked Questions
Common questions about Albany Lebanon 1031 exchanges
The Albany-Lebanon area offers stable cap rates of 5.5-6.5%, low property taxes at 0.82%, strong manufacturing employment base, and central Willamette Valley location. The market provides stability with lower costs than major Oregon metros.
Wah Chang Corporation and other rare metals manufacturers provide stable, high-paying employment that supports the local housing market. This specialized industry creates consistent rental demand and economic stability, though it also creates some economic concentration risk.
Yes, the region has 2 designated Opportunity Zones in downtown Albany and Lebanon. Oregon has 86 total opportunity zones, offering potential tax benefits for qualifying investments in economically disadvantaged areas.
Property taxes are favorable at 0.82%, below both the state average of 0.87% and national average of 1.02%. This provides better cash flow for investors compared to higher-tax Oregon counties like Washington or Multnomah.
Albany is centrally located in the Willamette Valley with easy access to Portland (70 miles), Salem (26 miles), and Corvallis (20 miles). However, the area is car-dependent with limited public transportation, which affects tenant demographics and rental demand patterns.