Section 8 Fair Market Rent (FMR) for ZIP 98324 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 98324 (Unknown, WA) reveals a limited dataset, making precise calculations challenging. However, based on the available Fair Market Rent (FMR) for a two-bedroom apartment at $1,270 per month for fiscal year 2026, we can derive some insights into the potential Section 8 cap rate scenario.

To calculate the implied gross yield, we first need to annualize the FMR. At $1,270 per month, the annual rental income would be $15,240. Given that the median home value is not available, we cannot directly compute a cap rate using the traditional formula (Net Operating Income / Property Value). Instead, we focus on the gross yield, which is the annual rental income divided by the property value.

In the absence of a median home value, let's assume a hypothetical property value of $300,000 for illustrative purposes. This yields an implied gross yield of approximately 5.08%. For context, if we were to use a different hypothetical property value, say $400,000, the gross yield would drop to about 3.81%. These figures provide a range of possible gross yields for properties in ZIP 98324 under Section 8 contracts.

However, it's important to note that the lack of specific data on median home values, market rents, renter density, and days on market (DOM) makes it difficult to assess the realism of these scenarios. In general, higher gross yields suggest greater profitability, but they also imply higher risks or less favorable market conditions. The absence of data on renter density and DOM means we cannot accurately gauge how competitive the rental market is or how likely it is to find tenants quickly.

Without concrete figures on market rents and property values, the gross yield derived from the Section 8 FMR ($1,270 per month) provides a conservative estimate. It indicates that properties in ZIP 98324 might offer a gross yield around 5.08%, assuming a property value of $300,000. This figure serves as a benchmark for landlords and small-portfolio investors considering Section 8 participation in this area.

To make a more informed decision, investors should seek additional local real estate data, including actual property values and market rents. This will allow them to compare the gross yield from Section 8 against typical market yields, providing a clearer picture of the investment opportunity.

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.