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 | $1,570 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $471,673 | 0.38% | F |
| 2BR | $2,180 | $527,488 | 0.41% | F |
| 3BR | $3,010 | $611,736 | 0.49% | F |
| 4BR | $3,400 | $764,143 | 0.44% | F |
| 5BR | $3,944 | $921,756 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 98407, Tacoma, WA, are significant. Tenant turnover is a major concern, with the market rent at $1,978 compared to the Federal Market Rent (FMR) of $2,240 for FY 2024. This discrepancy can lead to frequent changes in tenants, which is costly and time-consuming. Additionally, vacancy exposure is a risk due to the average Days on Market (DOM) being only 16 days, indicating a highly competitive rental market where units may remain vacant longer than expected.
The deferred maintenance exposure is another critical issue. With a typical home value of $631,587 and a median income of $110,288, many residents may struggle to afford necessary repairs and upgrades, leading to potential property deterioration over time. The financial strain on tenants can result in delayed or insufficient maintenance requests, impacting the overall condition and value of the property.
However, these risks must be weighed against the high renter share in the area, which stands at 36.5%. High renter density typically translates into higher demand for housing vouchers, making it easier to find tenants who qualify for Section 8 assistance. This demand helps mitigate the risk of vacancy and ensures a steady stream of qualified applicants.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the strong rental market and high demand for Section 8 vouchers make ZIP 98407 a moderate risk for a first-time Section 8 landlord.
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.