Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 98421 in fiscal year 2024 is set at $2170. This figure represents the maximum amount that a landlord can charge under the Section 8 program, which is a federally subsidized housing assistance program. It's important to note that this is the payment standard, not the actual rent you'll receive. The actual rent will be determined based on the tenant's income and other factors, but it cannot exceed $2170.
To put this into perspective, the average rent for properties in ZIP 98421, according to Census ACS data, is $1,083. This means that the Section 8 payment standard is significantly higher than the typical market rate, offering a potentially attractive opportunity for landlords looking to secure stable rental income.
The high percentage of renters in ZIP 98421, at 94.7%, indicates strong demand for rental properties. This high demand suggests that there are many potential tenants who could benefit from the Section 8 program, making it likely that your property will be occupied. However, the acquisition cost for properties in this area is listed as N/A, which implies that there might not be recent data available on property prices. This could mean that you should research further to understand the local real estate market and the costs involved in acquiring a rental property.
Before deciding to participate in the Section 8 program with a rental property in ZIP 98421, you must ensure that your property meets all the necessary quality standards. These are known as Housing Quality Standards (HQS), which include safety and habitability criteria such as proper heating, plumbing, and structural integrity. A thorough inspection to confirm compliance with these standards is essential, as failing to meet HQS requirements can result in penalties or loss of rental payments.
In summary, the Section 8 program offers a guaranteed payment standard of $2170 for ZIP 98421, which is notably higher than the local average rent of $1,083. With a high renter share indicating strong demand, this presents a solid opportunity for securing long-term tenants. But, you must verify that your property fully complies with HQS to avoid any issues once you've signed up for the program.
Data Sources: FMR data from HUD (2027). 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.