Location: Jefferson County, WA | Metro: Jefferson 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 | $1,010 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $272,895 | 0.39% | F |
| 2BR | $1,250 | $471,925 | 0.26% | F |
| 3BR | $1,730 | $615,137 | 0.28% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 98320 (Brinnon, WA) presents a nuanced landscape for landlords and small-portfolio investors. The median home value stands at $361,554, indicating a relatively stable housing market. While the percentage of listings that have been reduced and the median days on market (DOM) are currently unavailable, these metrics are crucial for understanding the immediate supply-demand dynamics. A high percentage of reduced listings or an increasing DOM would suggest a softening market, where sellers might have less pricing power. Conversely, low percentages and decreasing DOM values typically indicate a robust market with strong seller leverage.
On the rental side, the Fair Market Rent (FMR) for ZIP 98320 is projected at $1,110 for the fiscal year 2026, whereas the current market rent is estimated at $1,266 according to the Census ACS. This suggests that there is a slight premium in the current rental market compared to government projections. However, it also implies that the rental market may face downward pressure if the gap between actual rents and FMRs persists or widens. Landlords should be cautious about setting rents above the FMR trendline, as it could lead to decreased occupancy rates if tenants find the cost too high relative to other options or government subsidies.
For long-term investors considering appreciation, the data points to a cautious outlook. The current market conditions, with the median home value holding steady, combined with the potential softness indicated by the missing DOM and listing reduction data, suggest that significant appreciation may not be imminent. However, appreciation can still occur due to broader economic factors such as inflation, job growth, and population increases. Investors should focus on areas showing consistent economic growth and consider diversifying their portfolios to include properties with intrinsic value drivers, such as proximity to amenities, schools, or employment centers.
In summary, the setup in Brinnon, WA, implies a market where landlords and small-portfolio investors must balance current rental premiums against potential future pressures. Pricing homes competitively and setting rents in line with FMR trends will be key strategies to maintain occupancy and ensure returns. Long-term appreciation is possible but not guaranteed, making strategic investment decisions critical.
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.