Location: Bremerton-Silverdale-Port Orchard, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,370 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
The analysis for ZIP code 98061 in Unknown, WA, reveals a unique set of circumstances that affect the potential Section 8 cap rates. For context, the Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $2050 per month. However, the market rent is currently not available, which makes it challenging to provide a direct comparison. Additionally, the median home value is also not specified, adding another layer of uncertainty.
To derive a rough cap-rate picture, we must first annualize the FMR. At $2050 per month, the annual rent for a two-bedroom unit under the Section 8 program would be $24,600. This figure represents the gross income an investor could expect from a property in this category if it were fully occupied throughout the year. Without a specific median home value, we cannot calculate the exact cap rate, but we can infer that the implied gross yield from Section 8 would be lower compared to typical market yields, assuming market rents are higher. The exact disparity remains unclear due to the missing market rent data.
The renter density percentage and the days on market (DOM) are also unspecified, which means we cannot precisely gauge the likelihood of finding tenants quickly or maintaining occupancy levels. These factors are crucial for determining the feasibility of Section 8 investments versus traditional rental properties. Given the lack of these specifics, we can only state that the annualized Section 8 rent of $24,600 offers a stable income source, albeit potentially at a lower gross yield compared to non-subsidized rentals.
In conclusion, while the annualized Section 8 rent provides a predictable income stream, the absence of key data points such as the market rent and median home values prevents us from making a definitive comparison between the gross yields of Section 8 and non-subsidized properties. Investors should consider these unknowns when evaluating the potential returns of properties in ZIP 98061.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.