Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
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). 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.