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 | $1,860 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,570 | $381,372 | 0.67% | D |
| 3BR | $3,550 | $517,156 | 0.69% | D |
| 4BR | $4,010 | $583,891 | 0.69% | D |
| 5BR | $4,652 | $630,432 | 0.74% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 98375, which includes Puyallup, WA, and parts of Pierce County, are straightforward. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this ZIP code is set at $2,640 per month for fiscal year 2024. This figure represents the maximum amount that the housing authority will pay for a two-bedroom rental unit in this specific ZIP code.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), is slightly higher at $2,739 per month. This suggests that landlords might be able to charge a bit above the SAFMR without losing tenants who rely on Section 8 vouchers.
A landlord participating in the Section 8 program receives a reimbursement based on the SAFMR minus the tenant's portion of the rent, plus any applicable utility allowances. The tenant's portion is typically 30% of their adjusted income, which can vary widely depending on the individual tenant's financial situation. Utility allowances are set by the housing authority and cover costs such as electricity, gas, water, and sewer.
To illustrate, if a tenant's portion of the rent is $792 (which is 30% of an adjusted income of $2,640), then the landlord would receive the difference between the SAFMR and the tenant's portion. In this case, the landlord would receive $1,848 ($2,640 - $792) from the housing authority. If there is a utility allowance of $100, the total reimbursement to the landlord would be $1,948.
This creates a reimbursement gap when compared to the local market rent. For a two-bedroom unit priced at $2,739, the landlord would have to absorb the difference between the market rent and the Section 8 reimbursement. In this scenario, the gap is $791 ($2,739 - $1,948).
In summary, while landlords in ZIP 98375 can charge close to the local market rate of $2,739, they should be prepared for a reimbursement of around $1,948 for a two-bedroom unit under the Section 8 program, leading to a gap of $791. This gap must be considered when deciding whether to accept Section 8 vouchers for rental units in this area.
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.