Location: Tacoma, WA | Metro: Seattle-Bellevue, 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 | $1,820 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,440 | $410,736 | 0.59% | F |
| 3BR | $3,320 | $565,813 | 0.59% | F |
| 4BR | $3,800 | $668,442 | 0.57% | F |
U.S. Census Bureau data (2024)
Milton, WA, ZIP code 98354, is a suburban neighborhood with a population of 8,597 residents. The area has a significant rental market, with 44.4% of the population being renters. This indicates a substantial demand for rental properties. The median household income in Milton is strong at $96,866, reflecting a middle-class community capable of supporting various housing options. The median home value stands at $570,532, suggesting that homeownership is a viable option for many but also implying that there is a segment of the population that prefers or needs to rent.
From an investment perspective, the rent economics in Milton are favorable. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,210, which is slightly above the market rent of $2,147 (ZORI). This means that Section 8 vouchers can cover a higher portion of the typical rental costs in the area, making it attractive for landlords who accept vouchers. For those who do not, the proximity of market rents to FMR suggests a competitive landscape where maintaining occupancy rates might require some strategic management.
The question of whether Milton fits a hands-off voucher operator or a hands-on value-add buyer depends on the specific goals of the investor. Given the robust median income and the fact that FMR exceeds market rent, hands-off operators can benefit from steady cash flows with minimal tenant turnover. However, for hands-on value-add buyers, Milton offers opportunities to improve property values through renovations and upgrades, given the strong local economy and high median home values. These improvements could potentially command higher rents, especially if targeting non-voucher tenants who might be willing to pay closer to the ZORI rate.
In summary, Milton, WA, ZIP 98354, is a well-rounded suburban neighborhood with a healthy mix of homeowners and renters. The current economic indicators favor both hands-off and hands-on investors, depending on their strategy. Hands-off operators can leverage the slightly higher FMR to secure stable returns, while value-add buyers can take advantage of Milton's strong economic base to increase property value and rental income.
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.