Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,430 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
U.S. Census Bureau data (2024)
ZIP code 98402 is positioned within the Tacoma, WA HUD Metro Fair Market Rent (FMR) area. Its FMR for FY 2024 is set at $1,950, which is higher than the market rent figure of $1,791. This suggests that 98402 is slightly above the average in terms of rental costs compared to other ZIP codes in the Tacoma metro area.
The median home value in 98402 is $429,974, which is lower than the typical home values found in the Tacoma metro area. This indicates that 98402 could be considered a more affordable sub-market within the broader Tacoma region, offering potential savings on property investments for landlords and small-portfolio investors.
With an 82.2% renter share, ZIP code 98402 has a significantly higher proportion of renters compared to the average Tacoma ZIP code. High renter share typically means a strong demand for rental properties, making it a favorable location for landlords. The combination of a below-average home value and a high renter share can signal a Section 8 sweet spot, where there is both a need for affordable housing and a supportive environment for rental properties.
In summary, ZIP 98402 appears to be a value pocket within the Tacoma metro area. It offers a below-average home value, which makes it attractive for property investments, while also having a high renter share that supports a robust rental market. Although the FMR is slightly above the market rent, this difference could indicate opportunities for landlords who are willing to accept Section 8 tenants, as they would still be within the fair market range but potentially benefit from lower property acquisition costs.
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.