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 | $1,370 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,540 | $334,807 | 0.46% | F |
| 2BR | $1,890 | $387,227 | 0.49% | F |
| 3BR | $2,610 | $444,360 | 0.59% | F |
| 4BR | $2,950 | $489,874 | 0.6% | D |
| 5BR | $3,422 | $547,695 | 0.62% | D |
U.S. Census Bureau data (2024)
1910 is the Fair Market Rent (FMR) for ZIP code 98408 in Tacoma, WA, for fiscal year 2024. 1727 represents the actual market rent, known as ZORI, indicating that properties here are priced slightly below the HUD's benchmark. The median home value stands at 436451, suggesting a moderate cost environment for real estate investments. Renter share in this area is 28.7%, which means nearly a third of the population is looking for rental housing. Median income is 80899, providing insight into the financial capabilities of potential tenants. Domains on the market last an average of 9 days before being sold, reflecting a relatively quick turnover rate for property sales. Only 0.2% of listings experience price cuts, signaling strong demand and pricing stability.
The disparity between the FMR and ZORI suggests an opportunity for landlords and small-portfolio investors to offer competitive rents while still maintaining profitability. Given the median home value and median income, there is a balanced market where homeownership is attainable but a significant portion of the population remains in the rental market. The low price-cut share indicates that setting initial prices close to the median value can be effective without needing to reduce them later, preserving the investment's perceived worth.
In conclusion, the data paints a picture of a stable and slightly undervalued rental market in ZIP 98408. For Section 8 investors, the lower market rent compared to the FMR offers a margin for managing properties effectively under the program. The quick sale times and minimal need for price adjustments further support a positive outlook for those interested in this area's real estate opportunities.
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.