Location: Bremerton-Silverdale-Port Orchard, 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 | $1,260 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $628,957 | 0.29% | F |
| 3BR | $2,410 | $768,115 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 98342 in Kingston, WA, presents an interesting scenario for real-estate investors focusing on Section 8 properties. The Fair Market Rent (FMR) for 2024 is set at $2,030, which is significantly higher than the average market rent of $1,489. This suggests that there is potential for higher yields when renting to tenants who qualify for Section 8 assistance. However, the median home value of $709,465 indicates a relatively expensive housing market, which could affect the overall profitability depending on the acquisition cost of the property.
On the stability axis, the data points to a mixed situation. Only 17.8% of the residents are renters, which is a low percentage indicating that the majority of the population owns their homes. This can be interpreted as a sign of economic stability but also implies a smaller pool of potential rental clients. Additionally, the median household income is $102,778, which is quite high and suggests that most residents have the financial means to purchase rather than rent. The lack of data on the number of days on market (DOM) makes it challenging to assess the speed at which properties are typically rented out, though it is likely slower given the low rental rate.
Given these factors, ZIP 98342 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. While the FMR offers a higher rent compared to the market average, the limited number of renters and the high median income indicate that the demand for rental properties, especially those participating in the Section 8 program, might be lower. This makes it less suitable for quick turnover or flipping strategies. Instead, landlords and small-portfolio investors should expect a more stable but potentially less lucrative investment environment. The higher FMR provides a solid foundation for cash flow, but the overall yield may be constrained by the expensive nature of the housing market and the limited rental population.
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.