Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
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 | $1,290 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,460 | $482,040 | 0.51% | F |
U.S. Census Bureau data (2024)
15.1% of residents in ZIP 98396 are renters, indicating a modest demand for rental properties. The Fair Market Rent (FMR) for the area, set at $2060 for zip FY 2024, provides a benchmark for landlords to price their units competitively. This figure contrasts with the Census ACS-reported market rent of $1,173, suggesting a potential opportunity for landlords to adjust their pricing strategies to align more closely with HUD guidelines.
$464,734 is the median home value in ZIP 98396, reflecting a stable housing market that could support steady rental income. However, the median income of $112,031 indicates that while homeownership is feasible for many, it leaves a significant portion of the population reliant on rental options, particularly those who might qualify for assistance through programs like Section 8.
The lack of specific data regarding the average days on market (DOM) and the percentage of listings that require price cuts highlights a gap in detailed market analysis for this region. Despite this, the overall economic indicators suggest a balanced market where rental properties can be managed effectively with proper pricing and maintenance.
In conclusion, the combination of a reasonable renter share and a fair market rent that exceeds the current market rent by nearly $900 suggests that landlords in ZIP 98396 can benefit from adjusting their rents to HUD standards. Given the median income and median home values, there is a strong case for participating in the Section 8 program, which would provide a guaranteed tenant base with stable rental payments. Verdict: ZIP 98396 is suitable for Section 8 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.