Location: Bremerton-Silverdale-Port Orchard, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,410 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 98367 (Port Orchard, WA) for Section 8 properties starts with three key questions:
1. Does the Fair Market Rent (FMR) of $2140 cover the debt service on a property priced at $612,788?
Yes. The FMR can be used to calculate potential rental income. For a property valued at $612,788, assuming a typical mortgage rate of around 4.5%, the monthly mortgage payment would be approximately $3,000. Given that the FMR is $2140, this clearly does not cover the debt service. Thus, the answer is no.
No. As explained, the FMR of $2140 is insufficient to cover the debt service on a $612,788 property. This makes the investment unfeasible under Section 8 without additional sources of income or subsidies.
2. Is the market rent ($2,280 ZORI) above, at, or below the FMR?
Above. The ZORI (Zillow Observed Rent Index) of $2,280 exceeds the FMR of $2140. This indicates that the market rent is higher than what Section 8 will reimburse, potentially making the investment less attractive unless you're willing to accept lower-than-market rents.
At or Below. Since the ZORI is above the FMR, this scenario does not apply. However, if it were at or below, it would suggest that Section 8 reimbursement rates align well with market conditions, making the investment more viable.
3. Are there enough demand indicators (14.8% renters + 17-day DOM) to justify the purchase?
It Depends. The 14.8% of renters in Port Orchard suggests a moderate level of demand. Additionally, a 17-day Days on Market (DOM) indicates relatively quick turnover, which is positive. However, these factors alone do not outweigh the insufficiency of FMR to cover debt service. Therefore, the investment remains unfeasible based on the first question's outcome.
In summary, for ZIP 98367, the Fair Market Rent of $2140 does not sufficiently cover the debt service on a property costing $612,788. Even though the market rent is higher at $2,280, and there is moderate demand with 14.8% of renters and a 17-day DOM, the primary concern is the inability to meet financial obligations solely through Section 8 reimbursement rates. Consequently, a landlord should not buy here for Section 8 purposes.
Data Sources: FMR data from HUD (2027). 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.