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 | $1,420 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $400,302 | 0.4% | F |
| 2BR | $1,960 | $507,291 | 0.39% | F |
| 3BR | $2,710 | $559,583 | 0.48% | F |
| 4BR | $3,060 | $709,330 | 0.43% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 98349, which includes Lakebay, WA, within the Tacoma, WA HUD Metro FMR Area, is nearly balanced but leans slightly towards being unprofitable for landlords. The Fair Market Rent (FMR) set at $1560 for the fiscal year 2024 is below the Census ACS reported market rent of $1,607. This indicates that landlords might struggle to cover costs if they adhere strictly to the FMR guidelines.
Regarding acquisition affordability, the median home value of $530,789 presents a significant barrier to entry for many small-portfolio investors. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share suggest that homes are selling quickly and without substantial discounts. This implies that while initial investment costs are high, the risk of overpaying or holding property for extended periods is relatively low.
Tenant demand in 98349 is modest given the total population of 4,931 and a renter share of 12.6%. This translates to approximately 621 renters in the area. While the number is not large, it could still support a few rental properties, especially if the portfolio size is kept small.
Verdict: The rent math in 98349 barely works, with FMR slightly below market rates. Acquisition is costly but potentially less risky due to quick sales and minimal price cuts. Tenant demand is limited but sufficient for a small-scale investment strategy. Landlords should carefully consider their cost structures and target a niche market to ensure profitability.
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.