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 | $1,440 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $309,296 | 0.52% | F |
| 2BR | $1,990 | $371,340 | 0.54% | F |
| 3BR | $2,750 | $432,161 | 0.64% | D |
| 4BR | $3,100 | $486,101 | 0.64% | D |
| 5BR | $3,596 | $541,267 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 98409, located in Tacoma, WA, is positioned within the Tacoma, WA HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1,850. Comparatively, the market rent in 98409 stands at $1,685, which is slightly below the FMR but still indicative of a stable rental market. The median home value in 98409 is $413,212, aligning closely with typical ZIP codes within the Tacoma, WA HUD Metro FMR Area.
A key metric to consider is the renter share, which is 55.6% in 98409. This figure is notably higher than the average for the broader Tacoma, WA HUD Metro FMR Area, suggesting a strong preference for renting over owning within this ZIP code. Given the combination of a high renter share and a median home value that is on par with other areas in the metro, 98409 can be inferred as a potential value pocket for landlords and small-portfolio investors interested in Section 8 housing.
The FMR being higher than the market rent indicates that properties in 98409 may be eligible for higher rental assistance payments through the Section 8 program, making it attractive for those who wish to participate in the federally subsidized housing market. However, the relatively high renter share also implies a competitive rental environment where demand for affordable housing is strong.
In conclusion, 98409 presents itself as a viable option for investors looking to capitalize on the Section 8 program within the Tacoma, WA HUD Metro FMR Area. The ZIP code's characteristics suggest a balance between affordability and demand, positioning it as a value pocket rather than a premium sub-market.
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.