Location: Island County, WA | Metro: Island County, WA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $570,018 | 0.25% | F |
| 2BR | $1,750 | $718,419 | 0.24% | F |
| 3BR | $2,400 | $820,284 | 0.29% | F |
| 4BR | $2,870 | $1,018,285 | 0.28% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 98236, which encompasses Clinton, WA, highlights a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,590, whereas the actual market rent based on Census ACS data stands at $1,529. This creates a gap of $61, or approximately 4%, favoring the FMR over the market rate.
This gap means that voucher tenants can provide a stable and predictable income stream for landlords. Since the FMR exceeds the market rent, landlords can potentially secure higher rental payments through the Section 8 program than they would from non-voucher tenants. This makes the area a strong yield play, particularly given the relatively low percentage of renters in Clinton, which is only 15.4%. With a median home value of $723,475 and a median income of $94,362, the local economy suggests that many homeowners might find it challenging to afford renting properties at market rates, making Section 8 vouchers an attractive option for filling vacancies.
Moreover, the stability of the Section 8 program can be beneficial for landlords who seek consistent cash flow without the volatility associated with open-market rentals. The federal government guarantees payment up to the FMR, ensuring that landlords receive their agreed-upon rent even if the tenant's portion of the payment is delayed. This predictability is crucial in a market where the median home values are high, indicating a potential shortage of affordable rental options for lower-income residents.
In conclusion, the gap between the FMR and market rent in ZIP 98236 presents a compelling case for landlords and small-portfolio investors to consider participating in the Section 8 program. It offers a chance to earn slightly above market rates while providing affordable housing solutions in Clinton, WA.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
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.