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 | $1,420 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $496,576 | 0.39% | F |
| 3BR | $2,710 | $568,936 | 0.48% | F |
| 4BR | $3,060 | $641,326 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 98443 is centered around the disparity between the Fair Market Rent (FMR) set at $1920 for fiscal year 2024 and the actual market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $1,823. This gap is $97, representing approximately a 5.3% difference. Given that the FMR exceeds the market rent, landlords can leverage this situation to enhance their investment yields.
Voucher tenants provide a reliable and steady stream of rental income, guaranteed by the federal government up to the FMR level. In this scenario, landlords can potentially increase their rental rates closer to the FMR without losing tenants, thus improving their cash flow and overall returns. The higher FMR in Waller, WA, where 18.2% of residents are renters, means that landlords who accept vouchers can charge closer to the $1920 threshold, thereby capturing additional revenue compared to the open-market rate of $1823.
The median home value in Waller, WA, is $570,930, and the median household income is $105,035. These figures indicate a relatively affluent area where the demand for affordable housing might be lower, making the opportunity to receive guaranteed rents through the Section 8 program particularly attractive. Landlords can benefit from the government subsidy, which covers the difference between the tenant's contribution (typically 30% of their income) and the FMR, ensuring a stable and predictable income source.
However, accepting voucher tenants comes with certain administrative and compliance costs. Landlords must ensure their properties meet Housing Quality Standards (HQS) and undergo regular inspections. Additionally, there may be delays in receiving rent payments due to the bureaucratic processes involved. Despite these challenges, the financial upside of charging closer to the FMR while having a guaranteed tenant makes it a compelling strategy for maximizing returns in ZIP 98443.
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.