Sarah Beth Hopkins, from Salem, was arrested on Sunday after the parents of her alleged victim reported her to police.
The boy, now 12, confessed to his mother he had been sexually active with Hopkins for the last eight months.
When Hopkins was confronted she allegedly admitted the sexual abuse.
The family lived at the same apartment complex as Hopkins - who was seen as a trusted family friend - until about two weeks ago.
The mother became suspicious of their close friendship and the amount of time they spent together.
The abuse is thought to have taken place at her apartment and while they were out on long walks together.
Police believe there may be more victims.
Marion County Sheriff's Office spokesman Don Thomson said: 'The boy confirmed that he, in fact, had been involved in this relationship with this 35-year-old woman.
'We're kind of asking anyone with a male child who may have had contact with Mrs Hopkins, befriended by her, lived near her or whatever, we’d like them to sit down with their son and talk. Make sure everything’s okay.'
When questioned by the deputy, Hopkins is believed to have admitted she and the victim had been sexually active but said she hadn't threatened the victim or given him anything in return for sex.
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