Section 8 Fair Market Rent (FMR) for ZIP 98386 - 2027

FY 2027 Fair Market Rent Rates

The potential risks for investing in Section 8 properties in ZIP code 98386 in Unknown, WA, include significant tenant turnover. The Fair Market Rent (FMR) for FY 2024 is set at $2050, but without current market rent data, it's unclear how this compares to local rates, which could affect turnover. High turnover can lead to increased costs associated with finding new tenants, including advertising, screening, and preparation of the property.

Vacancy exposure is another concern. With no data on days on market (DOM), it's difficult to assess how long properties might remain vacant between tenancies. Vacant units represent lost rental income, which can be particularly problematic for landlords relying on steady cash flow from Section 8 vouchers.

A third risk involves deferred maintenance. Without information on the typical home value or median income in the area, it's challenging to gauge the financial capacity of landlords to maintain their properties adequately. Poor maintenance can lead to safety issues and higher repair costs, both of which are detrimental to the overall investment.

However, these risks must be weighed against the high concentration of renters in the area. A high renter share typically indicates a strong demand for housing vouchers, which can stabilize cash flow and reduce the likelihood of vacancies. While the exact percentage of renters is not available, the presence of a substantial number of renters suggests that there will likely be a pool of Section 8 participants interested in leasing properties.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.