Section 8 Fair Market Rent (FMR) for ZIP 98445 - 2027

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

Investment Score for ZIP 98445

Monthly Rent (2BR)

$2,050

Median Price (2BR)

$407,842

1% Rule

0.5%

Annual Yield

6.03%

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	$1,480
1 Bedroom	$1,670
2 Bedrooms	$2,050
3 Bedrooms	$2,830
4 Bedrooms	$3,200
5 Bedrooms	$3,712
6 Bedrooms	$4,157
7 Bedrooms	$4,490
8 Bedrooms	$4,715

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
2BR	$2,050	$407,842	0.5%	F
3BR	$2,830	$488,229	0.58%	F
4BR	$3,200	$536,206	0.6%	F
5BR	$3,712	$587,767	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

33,684

Median Household Income

$92,520

Housing Units

12,526

Renter Percentage

31.5%

Occupancy Rate

95.6%

Renter Occupied

3,779

To determine if Clover Creek, WA (ZIP 98445) is a suitable investment for Section 8 landlords, follow this decision tree:

If you are considering a property valued at $497,162:
- The Fair Market Rent (FMR) for 2024 is $2010 per month.
- This amount does not cover the full debt service on such a high-value property, indicating a no for investment suitability in this scenario.
If the Zillow Observed Rent Index (ZORI) is $1,929:
- The ZORI is slightly below the FMR, which suggests that market rents are lower than what the government deems fair for Section 8 tenants.
- In this case, the answer is it depends. While the market rent is below the FMR, landlords can still potentially benefit from the difference, but they must consider the overall financial viability and the local housing market conditions.
If there are 31.5% renters and an average Days on Market (DOM) of 19 days:
- The percentage of renters indicates a moderate level of demand for rental properties.
- The short DOM of 19 days implies that properties are rented quickly once they become available.
- Based on these figures, the answer is yes. There is sufficient demand to ensure that a rental property will be occupied promptly.

For a landlord asking whether they should buy in ZIP 98445 for Section 8 purposes, the decision hinges on the value of the property and the alignment between market rents and the FMR. If the property is priced at $497,162, the FMR of $2010 does not sufficiently cover debt service, making it a poor choice. However, if the focus is on properties with a ZORI of $1,929, the investment could be viable despite the slight discrepancy with the FMR. Lastly, given the 31.5% renter population and quick turnover indicated by the 19-day DOM, there is enough demand to support rental investments.

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.