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 | $1,650 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,790 | $506,015 | 0.35% | F |
| 2BR | $2,120 | $654,375 | 0.32% | F |
| 3BR | $2,940 | $695,841 | 0.42% | F |
| 4BR | $3,540 | $831,451 | 0.43% | F |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP 98365, Port Ludwood, WA, reveals a challenging housing market. The median income for a household here is $98,776, which contrasts sharply with the market rate rent of $1,978 per month. This figure represents nearly 25% of the annual income, making it difficult for many residents to afford housing without financial strain.
Comparatively, the Fair Market Rent (FMR) set by HUD for metro areas in fiscal year 2026 is $2,020, slightly above the current market rate. This suggests that even with a Section 8 voucher, which typically covers the difference between the tenant's contribution and the FMR, the cost of living remains high relative to income levels.
With only 11.0% of the 5,168 population being renters, competition among landlords is likely to be fierce. Given the tight rental market and the affordability gap, landlords should carefully consider their strategy when deciding whether to accept voucher tenants or focus on those paying cash.
Affordable housing options are limited, and many renters may find themselves relying on assistance programs such as Section 8 vouchers to meet their housing needs. Landlords who are willing to accept these vouchers will have a steady stream of tenants, although the rental income will be capped at the FMR. For those opting to pursue cash-paying tenants, higher rents might be achievable, but the pool of potential tenants is smaller and more selective.
The takeaway for landlords is that accepting Section 8 vouchers can ensure consistent occupancy and reduce vacancy rates, which are crucial in a low-renter-population area. However, they must also be prepared to navigate the regulations and requirements associated with the program. In contrast, focusing on cash-paying tenants allows for greater flexibility in setting rent, but landlords must be competitive and attractive to a smaller group of financially capable renters.
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.