Section 8 Fair Market Rent (FMR) for ZIP 98371 - 2027

Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area

Investment Score for ZIP 98371

F
Monthly Rent (2BR)
$1,980
Median Price (2BR)
$440,635
1% Rule
0.45%
Annual Yield
5.39%

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$1,430
1 Bedroom$1,610
2 Bedrooms$1,980
3 Bedrooms$2,730
4 Bedrooms$3,090
5 Bedrooms$3,584
6 Bedrooms$4,014
7 Bedrooms$4,335
8 Bedrooms$4,552

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
1BR $1,610 $362,805 0.44% F
2BR $1,980 $440,635 0.45% F
3BR $2,730 $590,033 0.46% F
4BR $3,090 $702,374 0.44% F
5BR $3,584 $793,693 0.45% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,682
Median Household Income
$97,242
Housing Units
10,231
Renter Percentage
28.1%
Occupancy Rate
93.9%
Renter Occupied
2,696

The Fair Market Rent (FMR) for ZIP code 98371, Puyallup, WA, for fiscal year 2024 is set at $1880. This figure represents the payment standard for Section 8 housing vouchers in your area. It is the maximum amount that the government will pay towards rent for a unit that qualifies under the program. However, it's important to note that this is not the rent you would charge tenants; it's the reimbursement limit from the Housing Choice Voucher program.

In contrast, the typical market rent for a two-bedroom apartment in Puyallup is around $2,031, according to the Zillow Observed Rent Index (ZORI). This means that if you participate in the Section 8 program, your rental income could be slightly lower than the average market rate. The difference between the ZORI and the FMR is approximately $151 per month for a two-bedroom unit.

The renter share in Puyallup is 28.1%, which indicates that about 28.1% of the population are renters. This suggests a moderate level of rental demand in the area. If you're considering acquiring a property for a Section 8 rental, the median home value is around $626,757. This is the price you might expect to pay for a typical home in Puyallup, but remember, Section 8 units are often apartments or smaller homes.

To make an informed decision, verify that the condition of the property meets the Housing Quality Standards (HQS) required by the Section 8 program. These standards ensure that the living conditions are safe and habitable. While the specifics can vary, they generally cover areas such as structural integrity, heating, plumbing, and safety features.

Participating in Section 8 can provide steady rental income, but it also comes with responsibilities. Ensure that you understand the requirements and that your property is suitable for the program before proceeding. With the right preparation, it can be a reliable investment strategy in Puyallup.

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.