Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
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 | $1,560 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,370 |
| 5 Bedrooms | $3,909 |
| 6 Bedrooms | $4,378 |
| 7 Bedrooms | $4,728 |
| 8 Bedrooms | $4,964 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,760 | $314,741 | 0.56% | F |
| 2BR | $2,160 | $405,618 | 0.53% | F |
| 3BR | $2,980 | $610,730 | 0.49% | F |
| 4BR | $3,370 | $745,819 | 0.45% | F |
| 5BR | $3,909 | $812,938 | 0.48% | F |
U.S. Census Bureau data (2024)
To strategically integrate ZIP 98372 into a Section 8 portfolio, consider it primarily as a cash-flow anchor. This classification is supported by the significant spread between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2024, the FMR for ZIP 98372 is set at $2070, while the current market rent stands at $1879. This means that properties in this area can command higher rents under the Section 8 program, providing a consistent and reliable source of income.
The median home value in ZIP 98372 is $627,772, which indicates a relatively stable housing market. However, the primary focus here should be on the rental aspect due to the nature of Section 8. The FMR provides a guaranteed minimum rent for eligible units, ensuring that landlords receive a steady cash flow that exceeds the local market rates. This makes ZIP 98372 particularly attractive for landlords and small-portfolio investors looking to stabilize their income streams with government-backed rental agreements.
The low price-cut share of 0.2% and the lack of data on days on market (DOM) suggest that the rental market in ZIP 98372 is competitive but not overly so, indicating that properties are generally rented out without significant discounts. Additionally, the 47.5% renter share points to a substantial portion of the population relying on rentals, which supports demand for Section 8 units. With a median income of $98,152, there is a mix of economic conditions that likely includes a need for affordable housing solutions, further justifying the inclusion of this ZIP code in a Section 8 portfolio strategy.
In summary, ZIP 98372 serves as an effective cash-flow anchor due to the favorable spread between the FMR and market rents, coupled with a stable housing market and sufficient demand for rental properties. This positioning ensures that investments in this area will generate predictable and robust returns through the Section 8 program.
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.