Location: Jefferson County, WA | Metro: Jefferson County, WA
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 | $1,490 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $835,073 | 0.23% | F |
| 3BR | $2,660 | $971,801 | 0.27% | F |
U.S. Census Bureau data (2024)
ZIP 98358, located in Nordland, WA, within the Jefferson County, WA metro area, offers a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code stands out as a potential cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the market rent. For fiscal year 2026, the FMR for the Jefferson County, WA metro area is set at $1,800, while the market rent in ZIP 98358 averages $1,458. This discrepancy means that landlords participating in the Section 8 program can secure higher rents than what the market currently dictates, thereby enhancing their cash flow.
The median home value in ZIP 98358 is $773,445, which indicates a relatively affluent neighborhood. However, the focus here should be on rental properties rather than homeownership. The average market rent being lower than the FMR ensures that landlords can collect higher guaranteed payments from the government, reducing the risk of vacancy and providing a steady stream of income.
Although the ZIP code does not provide specific percentages for price-cut shares or days on the market (DOM), these metrics are less critical when considering the cash-flow anchor role. The primary goal in this scenario is to ensure consistent, reliable income through the Section 8 program, which is well-supported by the favorable FMR compared to the local market rent.
ZIP 98358 also features a 14.8% renter share and a median income of $110,368, making it a viable option for diversification. However, given the choice, the cash-flow anchor strategy is more compelling. Landlords can leverage the higher guaranteed Section 8 rents to offset any potential risks associated with the program, such as administrative complexities or delayed payments.
In summary, ZIP 98358 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The $342 monthly difference between the FMR and the market rent provides a substantial financial benefit, ensuring landlords receive higher payments than the local market rate. This makes it an attractive option for those seeking stable and predictable 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.