Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
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 | $1,610 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,490 |
| 5 Bedrooms | $4,048 |
| 6 Bedrooms | $4,534 |
| 7 Bedrooms | $4,897 |
| 8 Bedrooms | $5,142 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,230 | $446,562 | 0.5% | F |
| 3BR | $3,080 | $534,218 | 0.58% | F |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 98303, located in Pierce County, Washington, it's crucial to know the specific financial parameters at play. For fiscal year 2024, the SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1710. This SAFMR figure is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
The SAFMR serves as the benchmark for determining the maximum amount that a Section 8 Housing Choice Voucher will cover. However, landlords should be aware that the actual reimbursement from the voucher program is not simply the SAFMR amount. It involves several factors including the tenant's portion of the rent and utility allowances.
The tenant's portion of the rent is typically calculated as 30% of their adjusted monthly income. If we consider an average adjusted monthly income of $1500 for a tenant in ZIP 98303, the tenant would be responsible for paying $450 towards the rent ($1500 * 0.30).
Utility allowances can vary but are generally set by HUD (Department of Housing and Urban Development) based on historical data. For a two-bedroom unit, the utility allowance might be around $250 per month, which is included in the total reimbursement calculation.
This means that if a landlord has a two-bedroom apartment priced at the SAFMR of $1710, the voucher would cover the remaining $1260 ($1710 - $450) plus the utility allowance of $250, bringing the total reimbursement to $1510 per month.
In ZIP 98303, there is no local market rent data available, which makes it difficult to compare the SAFMR against the broader rental market. However, it's important to note that the SAFMR is designed to reflect the median gross rent for the area, which includes utilities. Therefore, landlords should expect that the reimbursement will closely match the SAFMR without additional surplus.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 98303 would be zero if the market rent aligns with the SAFMR. Given the lack of local market rent data, landlords should use the SAFMR as a reliable indicator of the rent they can expect to receive from the voucher program.
Landlords participating in Section 8 should also be aware of the administrative aspects, such as the need to undergo regular inspections and adhere to specific lease terms. While the economics of the voucher program provide a stable income source, the overall financial picture must include these operational considerations.
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.