Location: Bremerton-Silverdale-Port Orchard, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $423,314 | 0.43% | F |
| 3BR | $2,410 | $500,497 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Suquamish, WA (ZIP 98392) for a Section 8 property might raise several valid concerns. Let's address these with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1720 cover the mortgage on a $485,446 home?
The FMR of $1720 in Suquamish, WA, for the fiscal year 2024 is indeed a critical factor when assessing whether a Section 8 property can be profitable. To determine if this rent can cover the mortgage, we need to calculate the potential monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $485,446 home would be approximately $2,500. This calculation shows that the FMR alone will not cover the mortgage payment, leaving a shortfall of around $780 per month. However, it's important to note that this analysis assumes no down payment and does not account for potential tax benefits or other subsidies that could offset some of this cost.
Objection 2: Is there enough renter demand at 23.3%?
The rental demand in Suquamish, WA, is relatively low, with only 23.3% of households renting. This percentage suggests a smaller pool of potential tenants compared to areas with higher rental rates. Despite this, the demand for affordable housing remains strong, and the local economy, driven by tourism and military presence, provides a steady stream of renters. The key here is understanding the dynamics of the local rental market. While the overall percentage is low, the actual number of renters can still support a few well-managed Section 8 properties. Additionally, the demand for affordable housing often exceeds the supply, making it a viable investment opportunity despite the lower percentage of renters.
Objection 3: Will vouchers keep pace with market rents of $1,411?
The average market rent in Suquamish, WA, stands at $1,411, which is slightly above the FMR of $1720. This raises questions about whether the voucher program will keep up with rising market rents. According to the latest data, the Housing Choice Voucher (HCV) payment standard for a two-bedroom apartment in Suquamish is set at $1,366. This amount is below the market rent but close enough to suggest that voucher holders can find suitable housing options. However, the data does not provide long-term projections on how the voucher amounts will adjust to market conditions. It's prudent for investors to monitor the local housing authority's adjustments to voucher amounts and consider the possibility of needing to supplement the difference between the voucher payment and market rent.
In conclusion, while Suquamish, WA, presents some challenges for Section 8 investors, particularly with regard to covering mortgage payments and keeping pace with market rents, the strong demand for affordable housing and the local economic factors make it a potentially rewarding investment. Careful management and monitoring of the local housing market will be crucial for success.
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.