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 | $1,350 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $340,923 | 0.45% | F |
| 2BR | $1,870 | $411,871 | 0.45% | F |
| 3BR | $2,580 | $475,675 | 0.54% | F |
| 4BR | $2,920 | $520,689 | 0.56% | F |
| 5BR | $3,387 | $571,811 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 98405 in Tacoma, WA, falls within the Tacoma, WA HUD Metro FMR Area, which makes it a strategic fit for a Section 8 portfolio. For fiscal year 2024, the Fair Market Rent (FMR) for a two-bedroom home in this area is set at $1730. This FMR figure stands slightly above the market rent of $1672, indicating a modest spread that could serve as a cash-flow anchor for investors.
The median home value in ZIP 98405 is $461,931, positioning it as a relatively affordable area within the broader Tacoma market. With a price-cut share of 0.3%, it suggests that properties here do not often require significant reductions in asking price, which can be reassuring for landlords concerned about maintaining rental rates. Additionally, the average days on market (DOM) of 22 days indicates a brisk sales environment, though this metric is more relevant for property purchases rather than rentals.
A key factor in deciding whether ZIP 98405 should be part of a Section 8 portfolio is its renter share, which stands at 50.8%. This high percentage of renters signals strong demand for rental properties. Furthermore, the median income in the area is $75,946, providing a solid economic foundation for tenants to meet their rental obligations.
Given these factors, ZIP 98405 is best suited as a diversifier within a Section 8 portfolio. Its combination of a slight premium over market rents, robust rental demand, and a stable median income makes it a reliable addition to any investment strategy aimed at balancing risk and reward. Landlords and small-portfolio investors should consider this area for its potential to offer steady returns without the volatility associated with purely cash-flow or appreciation plays.
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.