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 | $2,000 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,820 |
| 4 Bedrooms | $4,320 |
| 5 Bedrooms | $5,011 |
| 6 Bedrooms | $5,612 |
| 7 Bedrooms | $6,061 |
| 8 Bedrooms | $6,364 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,260 | $662,739 | 0.34% | F |
| 2BR | $2,770 | $718,063 | 0.39% | F |
| 3BR | $3,820 | $829,368 | 0.46% | F |
| 4BR | $4,320 | $1,035,733 | 0.42% | F |
| 5BR | $5,011 | $1,023,782 | 0.49% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 98332 in Gig Harbor, WA, are significant. First, consider the tenant turnover rate. With a market rent of $2,479 and a Fair Market Rent (FMR) of $2,620 for FY 2024, there is a notable discrepancy that could lead to frequent tenant changes. Landlords might find themselves adjusting to new tenants more often than desired, which can be time-consuming and costly.
Vacancy exposure is another concern. A 16-day Days on Market (DOM) indicates that properties in this area can remain vacant for extended periods, leading to lost rental income. The longer a property stays vacant, the higher the financial burden on the landlord, especially when factoring in mortgage payments and other expenses.
Deferred maintenance is also a risk factor. Given the typical home value of $888,175 and a median income of $135,330, homeowners may struggle to keep up with necessary repairs and upgrades. This can result in higher maintenance costs for landlords who must ensure their properties meet the required standards for Section 8 tenancy.
However, these risks are tempered by the high renter share in the area, which stands at 15.4%. High renter density typically correlates with increased demand for rental housing, including those utilizing Section 8 vouchers. This suggests that despite the challenges, there is a substantial pool of potential tenants who can benefit from the program, ensuring a steady stream of applicants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 98332 is moderate. While there are significant risks associated with tenant turnover, vacancy exposure, and deferred maintenance, the high renter share provides a strong counterbalance, indicating a viable market for Section 8 properties.
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.