Section 8 Fair Market Rent (FMR) for ZIP 98381 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

In ZIP code 98381, the Section 8 economics can be clearly understood by examining the SAFMR (Section 8 Area Fair Market Rent) and comparing it to the local market rent. For a two-bedroom apartment, the SAFMR is set at $1,130 per month for fiscal year 2026. This figure represents the maximum amount that the government will pay towards the rental subsidy under the Section 8 program. However, the local market rent for a similar unit in this ZIP code is higher, at $1,375 per month according to the Census ACS (American Community Survey).

The SAFMR is specifically tailored to reflect the conditions of ZIP 98381, ensuring that landlords receive an amount that is considered fair within this particular area. Landlords often wonder about the actual reimbursement they will receive once the tenant's portion and utility allowances are factored into the equation. Here’s a breakdown:

• Tenant Portion: Tenants participating in the Section 8 program typically pay 30% of their adjusted income towards rent. If we assume a tenant has an adjusted income that would result in a payment of $400 towards the rent, then the remaining amount to be covered by the voucher would be $730.
• Utility Allowances: The utility allowance varies based on the location and the size of the unit. In ZIP 98381, let's say the utility allowance for a two-bedroom unit is approximately $100. This allowance is intended to help cover the tenant's utility expenses but does not directly affect the landlord's reimbursement.

Therefore, the total reimbursement to the landlord would be the SAFMR plus any applicable utility allowance. In this case, the landlord would receive $1,130 plus the utility allowance of $100, totaling $1,230 per month. Given that the local market rent is $1,375, this leaves a gap of $145 between what the landlord could charge on the open market and what they receive via the voucher program.

This gap is something landlords need to consider when deciding whether to participate in the Section 8 program. While the program offers stable and timely payments, it also comes with a lower overall rent compared to market rates. For landlords who might have difficulty finding tenants willing to pay market rent, the Section 8 program can provide a reliable alternative, albeit with a smaller profit margin. For those who can command market rents, the decision to accept Section 8 vouchers should be weighed against the potential economic impact.

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.