Section 8 Fair Market Rent (FMR) for ZIP 98359 - 2027

Location: Tacoma, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA

Investment Score for ZIP 98359

Monthly Rent (2BR)

$1,830

Median Price (2BR)

$597,105

1% Rule

0.31%

Annual Yield

3.68%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,400
2 Bedrooms	$1,830
3 Bedrooms	$2,410
4 Bedrooms	$2,680
5 Bedrooms	$3,109
6 Bedrooms	$3,482
7 Bedrooms	$3,761
8 Bedrooms	$3,949

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,830	$597,105	0.31%	F
3BR	$2,410	$718,617	0.34%	F
4BR	$2,680	$872,265	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,581

Median Household Income

$114,091

Housing Units

1,909

Renter Percentage

12.0%

Occupancy Rate

90.6%

Renter Occupied

207

To determine if you should buy in ZIP code 98359 (Olalla, WA) for a Section 8 portfolio, follow this decision tree based on the provided data.

1) Does FMR $1820 (zip FY 2024) clear debt service on a $721,811 property?

No: The Fair Market Rent (FMR) of $1820 is insufficient to cover the debt service on a property valued at $721,811. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this valuation, the rental income would not meet the financial obligations required to maintain ownership.

2) Is market rent $1,538 (Census ACS) above, at, or below FMR?

Below: The market rent of $1,538 is lower than the FMR of $1820. This indicates that the actual rents being charged in the area are below what is considered fair market value for Section 8 purposes. Landlords who can charge closer to the FMR will have a better chance of covering their expenses.

3) Are 12.0% renters + N/A-day days on market enough demand?

It Depends: In Olalla, WA, 12.0% of households are renters. However, the lack of data on days on market (DOM) makes it difficult to assess the speed at which rental properties are occupied. A higher percentage of renters could indicate demand, but without knowing how quickly units are rented, it's hard to make a definitive recommendation. If the rental vacancy rate is low, it might still be feasible despite the low renter percentage.

In conclusion, the decision to invest in Olalla, WA for a Section 8 portfolio hinges on whether the FMR can sufficiently cover the debt service. Given the current FMR and property valuation, the answer is generally no. Additionally, the market rent being below the FMR poses another challenge. The rental demand appears limited, but this could be mitigated by a quick turnover rate, which cannot be assessed due to missing DOM data. Therefore, unless you can find properties valued significantly lower than $721,811 or there is strong evidence of rapid occupancy, Olalla, WA is not recommended for a Section 8 investment.

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.