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 | $1,500 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $379,254 | 0.45% | F |
| 2BR | $2,070 | $485,153 | 0.43% | F |
| 3BR | $2,860 | $618,189 | 0.46% | F |
| 4BR | $3,230 | $716,807 | 0.45% | F |
| 5BR | $3,747 | $803,927 | 0.47% | F |
U.S. Census Bureau data (2024)
1890 is the Fair Market Rent (FMR) for ZIP code 98406 in Tacoma, WA, for fiscal year 2024. 1783 is the actual market rent, known as ZORI, indicating a slight gap between the government's estimate and what tenants are paying. The median home value in this area stands at 615,985, reflecting a robust housing market. 38.7% of the population in ZIP 98406 are renters, suggesting a significant demand for rental properties. Median income is reported at 104,264, which can be a key factor in assessing the financial stability of potential tenants. Properties in this ZIP code typically spend 8 days on the market before being rented out, showing a quick turnaround time for landlords. Only 0.2% of listings experience a price cut, indicating strong pricing power and market confidence among property owners.
Investors looking to participate in the Section 8 program should note that the FMR of 1890 is higher than the average market rent of 1783, which could provide a margin for profit while still offering affordable housing options. The high median home value and low renter share price-cut percentage suggest a stable and potentially lucrative investment environment. Given these metrics, the verdict on participating in Section 8 in ZIP 98406 is positive, as it aligns well with market conditions and offers a reliable income stream for landlords and small-portfolio investors.
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.