Section 8 Fair Market Rent (FMR) for ZIP 98390 - 2027

Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area

Investment Score for ZIP 98390

F
Monthly Rent (2BR)
$2,270
Median Price (2BR)
$456,804
1% Rule
0.5%
Annual Yield
5.96%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,640
1 Bedroom$1,850
2 Bedrooms$2,270
3 Bedrooms$3,130
4 Bedrooms$3,540
5 Bedrooms$4,106
6 Bedrooms$4,599
7 Bedrooms$4,967
8 Bedrooms$5,215

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,270 $456,804 0.5% F
3BR $3,130 $587,252 0.53% F
4BR $3,540 $713,818 0.5% F
5BR $4,106 $786,710 0.52% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
11,546
Median Household Income
$97,795
Housing Units
4,953
Renter Percentage
44.6%
Occupancy Rate
98.7%
Renter Occupied
2,179

The Section 8 program in Sumner, WA (ZIP 98390) presents an interesting scenario for landlords and small-portfolio investors due to the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2090, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2067. This means that the FMR is $23 higher than the market rent, representing a 1.11% premium.

The gap suggests that voucher tenants can provide a stable yield play for property owners. In Sumner, where 44.6% of residents are renters and the median home value is $601,579, the median income of $97,795 implies that many residents rely on rental assistance programs to afford housing. Given these conditions, the slightly higher FMR compared to the market rent ensures that landlords receive a consistent and reliable income stream from Section 8 tenants, which can be particularly beneficial in a market where rents might fluctuate.

Moreover, the fact that the FMR exceeds the market rent by a small margin means that landlords can potentially offer slightly below market-rate rents to attract Section 8 tenants without sacrificing profitability. This slight discount can serve as a competitive advantage in a market where the demand for affordable housing is high, especially among those who need rental assistance to meet their living expenses.

In conclusion, the Section 8 program in Sumner, WA offers a compelling opportunity for landlords and small-portfolio investors. The $23 premium on FMR over market rent, along with the high percentage of renters and the significant median home value, supports the idea that voucher tenants can contribute to a steady and predictable income, making it a strategic investment choice.

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.