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 | $1,630 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $3,110 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $531,109 | 0.42% | F |
| 3BR | $3,110 | $576,995 | 0.54% | F |
| 4BR | $3,510 | $636,414 | 0.55% | F |
| 5BR | $4,072 | $681,716 | 0.6% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP 98338, Graham, WA, for investment opportunities, several key concerns arise regarding the feasibility of generating a stable income through rental properties. One primary objection is whether the Fair Market Rent (FMR) of $2,110 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $591,868. To address this, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a loan amount of $591,868 would be approximately $2,870. This means that the FMR of $2,110 falls short by about $760 per month. However, it's important to note that property taxes and insurance, which are additional costs, can vary widely and must be factored into the total expense.
A second concern is the level of renter demand in Graham, WA. The data indicates that only 15.5% of the population are renters. This low percentage might suggest a limited pool of potential tenants. Yet, this figure alone does not provide a complete picture of the rental market's health. We need to look at the number of available rental units and the vacancy rate to understand if there is sufficient demand to fill the supply. Additionally, the local economy and job market play a crucial role in sustaining renter numbers. Without specific data on these factors, it's challenging to definitively assess the viability of rental investments based solely on the 15.5% figure.
The third objection pertains to the ability of housing vouchers to keep up with the market rent of $2,534. Housing vouchers are designed to help low-income families afford housing, but they often come with strict guidelines and limits on how much they can cover. While the voucher program can provide a steady stream of tenants, it's essential to know the maximum allowable voucher amount for ZIP 98338. If the voucher amount is significantly lower than the market rent, landlords may face challenges in covering their expenses. As of now, the voucher amount for Graham, WA, is not specified in the provided data, making it difficult to draw a firm conclusion on this point.
To summarize, while the FMR of $2,110 does not fully cover the mortgage on a home priced at $591,868, other financial considerations such as property taxes and insurance, as well as the local economic conditions, should also be taken into account. The 15.5% renter population ratio suggests a smaller tenant pool, but the overall demand and vacancy rates are necessary to make a comprehensive assessment. Lastly, the compatibility of housing vouchers with the market rent of $2,534 remains uncertain without detailed information on voucher amounts in the area.
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.