Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,550 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
U.S. Census Bureau data (2024)
The ZIP code 98430 presents several challenges for potential Section 8 landlords. First, tenant turnover is a significant concern. The Fair Market Rent (FMR) for ZIP 98430 in fiscal year 2024 is set at $1990, which is lower than the market rent. This discrepancy can lead to higher turnover rates as tenants may seek better rental deals outside the program.
Vacancy exposure is another critical risk factor. With an average Days on Market (DOM) that is currently unavailable, it's difficult to gauge how long properties might remain vacant between tenancies. High vacancy periods can result in lost income, especially if the property remains unoccupied for extended times due to tenant changes or the time required to find a new voucher holder.
Deferred maintenance poses a considerable threat. The typical home value and median income figures for ZIP 98430 are not available, but generally, areas with lower median incomes may struggle to keep up with necessary repairs and maintenance. This issue can escalate quickly, leading to costly fixes and potentially affecting the property's overall condition and appeal to future tenants.
However, these risks must be weighed against the high concentration of renters in the area. The percentage of renters in ZIP 98430 is not specified, but a high renter share typically indicates robust demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate some of the risks associated with vacancy and turnover by ensuring a steady pool of potential tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 98430 is moderate. While there are notable risks such as tenant turnover and deferred maintenance, the strong renter base offers a degree of stability and demand that can offset these challenges.
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.