Section 8 Fair Market Rent (FMR) for ZIP 98330 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 98330 for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1990 cover debt service on a property?

• Yes: If the FMR of $1990 is sufficient to cover your debt service, then proceed to the next question. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs.
• No: If the FMR of $1990 does not cover your debt service, purchasing a property in this ZIP code for Section 8 would be financially unviable.

2) How does the market rent compare to the FMR?

• Above FMR: If the market rent is higher than the FMR of $1990, you will likely need to consider the potential vacancy rate and the willingness of tenants to pay the higher rent.
• At FMR: If the market rent is around the FMR of $1990, you can expect stable occupancy rates with Section 8 tenants.
• Below FMR: If the market rent is lower than the FMR of $1990, you might find that the FMR provides a better rental income than the local market, but you must still ensure that the FMR covers your expenses.

3) Is there enough demand with 51.6% renters and N/A-day days on market (DOM)?

• It Depends: With 51.6% of the population being renters, there is a significant portion of the market that could potentially be interested in Section 8 housing. However, the lack of specific days on market (DOM) data makes it difficult to assess how quickly properties are rented out. A low DOM suggests strong demand, while a high DOM indicates weaker demand. If the DOM is low, it means properties are rented quickly, which supports the viability of investing in Section 8 properties in this area. Conversely, if the DOM is high, it may indicate a slower rental market, making it less attractive for Section 8 investments.

Ultimately, the decision to invest in ZIP 98330 for Section 8 properties hinges on whether the FMR sufficiently covers your debt service, the comparison between market rent and FMR, and the strength of the rental demand in the area. If all conditions align favorably, then the answer is yes; otherwise, it is no or it depends on further specifics.

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.