Section 8 Fair Market Rent (FMR) for ZIP 98325 - 2027

Location: Jefferson County, WA | Metro: Jefferson County, WA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,270
1 Bedroom	$1,380
2 Bedrooms	$1,630
3 Bedrooms	$2,260
4 Bedrooms	$2,730
5 Bedrooms	$3,167
6 Bedrooms	$3,547
7 Bedrooms	$3,831
8 Bedrooms	$4,023

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,775

Median Household Income

$79,191

Housing Units

966

Renter Percentage

27.6%

Occupancy Rate

82.2%

Renter Occupied

219

If a landlord is considering purchasing a property in ZIP 98325 (Port Ludlow, WA) for Section 8, they must evaluate several factors to make an informed decision. Here's a structured approach:

Does the Fair Market Rent (FMR) of $1,480 (metro FY 2026) cover the debt service on a $538,379 property?
- No. The FMR of $1,480 would generate an annual income of $17,760. This amount is insufficient to cover typical debt service costs on a property valued at $538,379. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would likely exceed $17,760 annually.
Is the market rent of $1,828 (Census ACS) above, at, or below the FMR?
- The market rent of $1,828 is above the FMR of $1,480. This indicates that landlords could potentially earn higher rents by renting to non-Section 8 tenants. However, the decision to participate in Section 8 must still be evaluated against the first criterion.
Are 27.6% renters plus N/A-day days on the market (DOM) sufficient to meet demand?
- It depends. While 27.6% of households being renters suggests there is some rental demand, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties can be rented out. Additionally, the percentage of renters does not directly correlate to the number of Section 8 eligible households.

In conclusion, based on the provided data, a property in ZIP 98325 with a value of $538,379 would not be financially viable for a Section 8 landlord due to the low FMR compared to debt service costs. The higher market rent suggests better returns outside of Section 8, but the decision ultimately hinges on the specific financial situation and goals of the landlord. Without concrete DOM data, assessing rental demand remains speculative, but the percentage of renters indicates a moderate level of interest in the area.

Data Sources: FMR data from HUD (2027). 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.