Location: Clallam County, WA | Metro: Clallam 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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,070 | $324,936 | 0.33% | F |
| 2BR | $1,390 | $384,344 | 0.36% | F |
| 3BR | $1,920 | $494,293 | 0.39% | F |
| 4BR | $2,230 | $515,973 | 0.43% | F |
| 5BR | $2,587 | $565,248 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Port Angeles, WA (ZIP 98362), might raise several concerns regarding the viability of investing in properties under the Section 8 program. Let's address these points directly using available data.
Will Fair Market Rent (FMR) of $1,200 (metro FY 2026) cover the mortgage on a $450,233 home?
The FMR of $1,200 per month must be compared against the average monthly mortgage payment for a property valued at $450,233. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 4.5%, the monthly payment would be approximately $2,250. Clearly, the FMR does not cover the mortgage payment. This means that the landlord would need to rely on other sources of income or have additional funds set aside to manage the financial gap between the rental income and mortgage payments.
Is there enough renter demand at 32.7%?
The percentage of renter-occupied housing units at 32.7% suggests a moderate level of demand. However, it's important to consider the total number of housing units in the area. With a population of around 20,000, this translates to roughly 6,540 renter households. The data does not provide a direct measure of demand, but it indicates that a significant portion of the population is renting. To determine if this demand is sufficient, one would need to look into vacancy rates and the competition from other rental properties. While the 32.7% figure is not high, it does represent a substantial number of potential tenants.
Will vouchers keep pace with $1,146 market rents?
The question here revolves around whether the voucher amounts will match the market rents of $1,146. The FMR for FY 2026 is set at $1,200, which is higher than the current market rent. This suggests that vouchers should be able to keep pace with the market rents, potentially even offering slightly more. However, the actual amount of the voucher can vary based on family size, unit size, and local housing market conditions. It's crucial to monitor how the voucher amounts adjust over time to ensure they remain competitive with the market rents.
The data provides insights into some aspects of the investment landscape in Port Angeles, but it leaves out certain details that would be critical for a thorough analysis. For instance, while we know the FMR and the current market rent, we do not have specifics on the average voucher amount, which could differ significantly from the FMR. Additionally, the financial health of the tenant pool and the administrative burden of managing Section 8 properties are factors that would influence the decision to invest, but are not covered by the given data.
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.