Section 8 Fair Market Rent (FMR) for ZIP 98444 - 2027

Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area

Investment Score for ZIP 98444

Monthly Rent (2BR)

$1,930

Median Price (2BR)

$373,685

1% Rule

0.52%

Annual Yield

6.2%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,390
1 Bedroom	$1,570
2 Bedrooms	$1,930
3 Bedrooms	$2,660
4 Bedrooms	$3,010
5 Bedrooms	$3,492
6 Bedrooms	$3,911
7 Bedrooms	$4,224
8 Bedrooms	$4,435

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,570	$318,481	0.49%	F
2BR	$1,930	$373,685	0.52%	F
3BR	$2,660	$446,956	0.6%	F
4BR	$3,010	$513,898	0.59%	F
5BR	$3,492	$566,333	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

35,754

Median Household Income

$65,342

Housing Units

14,109

Renter Percentage

56.0%

Occupancy Rate

92.8%

Renter Occupied

7,336

The ZIP code 98444, located in Washington state, is situated in a suburban area with a mix of residential properties including single-family homes and apartments. The region offers a blend of quiet living and proximity to urban amenities, making it attractive to both families and young professionals.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 98444 for fiscal year 2024 is set at $1,710. This figure represents the benchmark rent level that HUD uses to determine eligibility for various housing programs.
The Zillow Observed Rent Index (ZORI), which reflects the actual average rent paid by tenants, stands at $1,553. This indicates that while rents are slightly below the FMR, they remain competitive and indicative of strong demand.
The median home value in the area is $447,033, suggesting a moderate price point for homeownership that contrasts with the rental market's dynamics.
Renters make up 56.0% of the population in ZIP 98444, indicating a robust tenant base and underscoring the importance of rental properties in the local market.
The days on market (DOM) for rental listings is relatively low at 19 days, implying quick turnover and high interest in available units.
The median household income in the area is $65,342, providing insight into the economic stability and spending power of potential tenants.

In summary, ZIP 98444 presents a favorable environment for rental investments, characterized by a substantial renter population and competitive rental prices. The low DOM and median income levels suggest a steady demand for affordable housing options. Landlords and small-portfolio investors can leverage these conditions to achieve strong occupancy rates and potentially capitalize on the gap between ZORI and FMR to maximize returns. However, the median home value also indicates a mixed market where homeownership remains a viable option, so targeting the right demographic with appropriate property offerings will be key to success.

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.