Location: Tacoma, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA
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 | $1,540 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,730 | $480,871 | 0.36% | F |
| 2BR | $2,130 | $530,734 | 0.4% | F |
| 3BR | $2,930 | $595,306 | 0.49% | F |
| 4BR | $3,310 | $815,344 | 0.41% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 98329, Gig Harbor, WA, stands at $110,316. At first glance, this might seem sufficient to cover the market rate rent of $1,755, which is the average rent reported by the Census Bureau's American Community Survey (ACS). However, the reality is more nuanced. To truly assess affordability, we must consider that the median rent represents a significant portion of a household's income.
In comparison, the Fair Market Rent (FMR) for ZIP 98329 in fiscal year 2024 is set at $2,010. This is the standard used to determine the amount of Housing Choice Voucher payments. The difference between the market rate and the FMR highlights an important point: while some households may be able to pay the market rate, others might only qualify for assistance up to the FMR level.
The ZIP code has a relatively low percentage of renters at 10.8%, with a total population of 11,552. This means that landlords face limited competition for tenants who are willing and able to pay the market rate. However, the affordability gap becomes apparent when considering that even at the median income level, a household would spend nearly 20% of their income on rent at the market rate. When the FMR is considered, this figure rises to over 22% of income.
For landlords evaluating their options between accepting vouchers versus seeking cash-paying tenants, the key takeaway is clear. While cash-paying tenants may offer higher rents, the significant portion of income spent on housing by local residents suggests a strong demand for affordable options. Accepting vouchers, despite potentially lower rental income, can ensure a stable tenant base and mitigate vacancy risks in a market where many households find it challenging to meet the full market rate.
Moreover, the FMR being slightly above the market rate indicates that voucher holders could afford units at the typical market price, making them a viable option for landlords looking to balance income with occupancy rates. In conclusion, landlords should carefully weigh the benefits of voucher acceptance against the potential for higher rents from cash-paying tenants, keeping in mind the overall affordability landscape in Gig Harbor.
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.