Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,590 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 98385 does not work favorably for landlords due to the Federal Market Rent (FMR) set at $2070 for fiscal year 2024. This figure represents the maximum amount that a tenant receiving federal assistance can pay towards rent. However, the market rent for the area is currently unavailable, which suggests that landlords may struggle to cover operational costs if they rely solely on FMR-supported tenants.
Acquisition of properties in this ZIP code is somewhat affordable, considering the median home value stands at $491,107. While this price point might be manageable for some investors, the lack of specific data regarding the number of days on market (DOM) and the percentage of homes that have had their prices cut indicates an incomplete picture of the local real estate market dynamics. This absence of data could imply either a stable market or a lack of transparency, both of which should be further investigated before making investment decisions.
Tenant demand in ZIP 98385 is limited. The total population of 457 individuals means that the pool of potential renters is quite small. With only 4.9% of the population being renters, landlords face a challenge in finding enough tenants to fill vacancies, especially when relying on those who can only afford to pay up to the FMR rate.
Verdict: Investing in ZIP 98385 presents significant challenges. The rent math does not favor landlords, particularly with the high FMR and unavailability of market rent data. Acquisition of properties is affordable based on the median home value, but without detailed market activity indicators, it's difficult to assess the risk accurately. Lastly, the low tenant demand due to the small population and low renter share makes this area less attractive for rental property investment. Landlords and small-portfolio investors should consider these factors carefully and possibly look into areas with larger populations and higher renter shares for better returns.
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.