Location: Lewis County, WA | Metro: Lewis 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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,880 | $612,285 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98361 reveals a unique balance between yield and stability, making it a noteworthy consideration for both landlords and small-portfolio investors.
Yield: The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,280. This figure contrasts sharply with the median home value of $445,208, suggesting a potential for attractive rental yields. However, the absence of market rent data implies that the FMR might be the primary benchmark for setting rental rates, which could limit flexibility in pricing. The disparity between rental income and property value indicates a market where rental properties can generate significant cash flow relative to the investment size.
Stability: On the stability front, the ZIP code shows 0.0% of residents as renters, indicating a predominantly owner-occupied community. This characteristic points towards a lower demand for rentals and potentially higher vacancy rates, which could affect cash flow negatively. Additionally, the lack of data on days on market (DOM) and median household income introduces uncertainty regarding the speed of property turnover and the financial capacity of potential tenants. These missing elements suggest a less stable environment for rental investments.
Given these factors, ZIP 98361 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The high FMR-to-home-value ratio supports the idea of consistent rental income generation, but the low percentage of renters and incomplete data on income and DOM indicate a need for caution regarding long-term stability and tenant reliability. Investors should focus on properties with intrinsic value and consider the potential for owner-occupancy or mixed-use developments to mitigate risks associated with rental instability.
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.