Section 8 Fair Market Rent (FMR) for ZIP 98391 - 2027

Investment Score for ZIP 98391

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	$1,880
1 Bedroom	$2,120
2 Bedrooms	$2,600
3 Bedrooms	$3,590
4 Bedrooms	$4,050
5 Bedrooms	$4,698
6 Bedrooms	$5,262
7 Bedrooms	$5,683
8 Bedrooms	$5,967

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
1BR	$2,120	$596,360	0.36%	F
2BR	$2,600	$631,406	0.41%	F
3BR	$3,590	$600,131	0.6%	F
4BR	$4,050	$739,566	0.55%	F
5BR	$4,698	$803,868	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98391 (Bonney Lake, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98391 in Bonney Lake, WA, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,470. However, the actual rental market price for a two-bedroom unit, according to Zillow, is $630,344, which translates to a monthly mortgage payment of approximately $3,168 based on a 4.5% interest rate and a 30-year fixed mortgage. This results in a price-to-FMR ratio of 21.3x, indicating that the actual rent far exceeds the FMR. This significant disparity means that tenants with Section 8 vouchers would find it challenging to secure housing in this area. The voucher amount of $2,470 would cover only about 78% of the average market rent for a two-bedroom unit. Therefore, landlords would need to absorb the remaining 22%, which could be a substantial financial burden. This makes it less likely for landlords to accept Section 8 vouchers, especially when they can receive higher rents from non-voucher tenants. #### Affordability & Renter Profile ZIP code 98391 has a population of 59,240, with a median household income of $135,037. Only 14.3% of the population are renters, suggesting that the majority of residents own their homes. The occupancy rate stands at 96.6%, indicating a robust demand for housing in the area. Given the high median income and low percentage of renters, the typical renter in this ZIP code is likely to be well-employed and financially stable. The median income suggests that even those who rent might be able to afford the high rental costs without needing government assistance. The FMR for a two-bedroom unit represents 21.9% of the median income, which is relatively affordable compared to the national average. However, the actual market rent of $3,168 per month is significantly higher, representing nearly 23.4% of the median income. This indicates that while the FMR is within reach for many residents, the actual rental market is quite tight and expensive. #### Investor Angle From an investor’s perspective, the ZIP code 98391 presents a challenging environment for cash flow positive investments at the FMR level. The FMR for a two-bedroom unit is $2,470, whereas the actual market rent is closer to $3,168. This implies that if an investor were to purchase a property and rent it out at the FMR, they would likely face negative cash flow due to the high mortgage payments required to service the property. The investment grade in this ZIP code would be considered low for Section 8-focused investors. The high price-to-FMR ratio of 21.3x suggests that the market is overpriced relative to the government-set rent levels. Investors looking to maximize returns would likely find better opportunities in areas where the FMR is closer to the actual market rent. #### Specific Actionable Insights 1. **Consider Alternative Investment Strategies**: Given the high price-to-FMR ratio, investors should consider alternative strategies such as purchasing properties in nearby ZIP codes with lower ratios. For example, if a neighboring ZIP code has a price-to-FMR ratio of 15x, it would provide a more favorable environment for cash flow positive investments. 2. **Focus on Higher-Rent Units**: Since the FMR for a three-bedroom unit is $3,420, which is closer to the actual market rent, investors might want to focus on acquiring larger units. A three-bedroom unit rented at the FMR would generate a higher monthly income, potentially making it more viable for positive cash flow. 3. **Evaluate Non-Section 8 Rental Opportunities**: Given the tight rental market and high median income, there may be opportunities to rent properties at market rates rather than relying on Section 8 vouchers. This strategy would likely result in higher rental income and potentially better cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 98391 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow when renting at FMR levels. Investors should look for areas with a more favorable price-to-FMR ratio and a less competitive rental market to ensure better returns on their investments.

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.