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 | $1,890 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,620 |
| 4 Bedrooms | $4,090 |
| 5 Bedrooms | $4,744 |
| 6 Bedrooms | $5,313 |
| 7 Bedrooms | $5,738 |
| 8 Bedrooms | $6,025 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $962,172 | 0.27% | F |
| 3BR | $3,620 | $981,968 | 0.37% | F |
| 4BR | $4,090 | $1,354,884 | 0.3% | F |
U.S. Census Bureau data (2024)
The ZIP code 98333, which encompasses Fox Island, WA, presents an interesting scenario for both tenants and landlords. The median household income in this area stands at a robust $172,292. However, without specific data on the market rate for rentals, it is challenging to determine if households can afford typical rent prices. What we do know is that the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $2180, which is the standard amount that Section 8 vouchers will cover.
Given the relatively low rental rate of 7.3% among the total population of 3,414, it suggests that the majority of residents in Fox Island own their homes. This implies that the competition for rental properties is likely to be lower compared to areas with higher percentages of renters. For those who do rent, the discrepancy between the median income and the FMR indicates that many could potentially afford higher rents, suggesting a significant affordability gap.
The takeaway for landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants is clear. While voucher payments provide a guaranteed and stable income source, they are capped at the FMR level, currently at $2180. Landlords might find that cash-paying tenants, especially in Fox Island where incomes are high, are willing to pay more than the FMR. This could result in higher profits per unit, but also requires careful consideration of the local rental market dynamics and the willingness of potential tenants to pay above the voucher rate.
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.