Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,630 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
U.S. Census Bureau data (2024)
The real estate market in ZIP 98433 presents a complex landscape that landlords and small-portfolio investors must navigate carefully. With the median home value currently unspecified, it's critical to focus on other key metrics to understand the dynamics at play.
A notable figure is the percentage of listings that have been reduced, which is also not specified in the data. This metric is crucial as it indicates the willingness of sellers to lower their prices, suggesting a potential softening in the market. Additionally, the median days on market (DOM) is listed as N/A, a piece of information that would typically reveal how quickly homes are selling. Together, these unspecified values imply a market that lacks clarity in terms of pricing power. However, they suggest that if there is a significant number of reduced listings and extended DOM periods, landlords and investors might find opportunities to negotiate better deals on property acquisitions.
On the rental side, the Fair Market Rent (FMR) for ZIP 98433 in fiscal year 2024 is set at $2050, whereas the current market rent stands at $2312 according to the Census ACS. This gap between FMR and actual market rents signals a strong rental demand that can support higher rents. Landlords and investors should be prepared to leverage this demand to maintain or slightly increase their rental rates, provided they keep their properties competitive in terms of quality and location.
For long-term hold investors, the setup implied by the data suggests a cautious approach to appreciation expectations. The unclear median home value and the unspecified percentage of reduced listings and median DOM periods indicate a market where appreciation might be modest. Realistically, unless there are significant changes in the local economy or population growth that drive up demand, appreciation in ZIP 98433 is likely to remain steady rather than surge. Investors should focus on cash flow from rentals and consider the rental market dynamics as a more reliable indicator of financial returns in the short to medium term.
In summary, while the exact median home value and the specifics on listing reductions and DOM periods are not provided, the trends suggest a market where pricing power is limited, but strong rental demand can offer a stable income stream. Long-term appreciation is expected to be moderate, necessitating a strategic approach to investment decisions.
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.