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 | $1,360 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,590 | $532,201 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 98323, located within the Tacoma, WA HUD Metro FMR Area, presents a unique profile when compared to typical ZIP codes in this region. The Fair Market Rent (FMR) for ZIP 98323 in fiscal year 2024 is set at $2000. This figure is slightly above the area's average market rent of $1,809, indicating that rental properties here command a premium over what is considered fair market value.
The median home value in ZIP 98323 stands at $512,861, which is higher than the average home value within the Tacoma metro. This suggests that homeownership in this ZIP code comes at a price point above the regional average, positioning it as a premium sub-market within the larger Tacoma, WA HUD Metro FMR Area.
A notable aspect of ZIP 98323 is its renter share, which is 13.0%. While this percentage is lower than some areas with high concentrations of renters, it still represents a significant portion of the housing market. Given the above-average market rent and the relatively high median home value, ZIP 98323 does not appear to be a value pocket where low home values and high renter share would typically signal a sweet spot for Section 8 investors.
However, the fact that the market rent is below the FMR despite the higher-than-average home values could present opportunities for landlords who are willing to participate in the Section 8 program. It implies that there might be a segment of the market where rents are being subsidized without a corresponding drop in property values, making it a viable option for those looking to balance risk and reward.
In summary, ZIP 98323 appears to be a premium sub-market within the Tacoma, WA HUD Metro FMR Area, characterized by higher home values and slightly above-average market rents. Its renter share, while not exceptionally high, still provides a sizeable tenant pool, particularly for those interested in leveraging the Section 8 program.
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.