Section 8 Fair Market Rent (FMR) for ZIP 98446 - 2027

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

Investment Score for ZIP 98446

Monthly Rent (2BR)

$2,270

Median Price (2BR)

$438,912

1% Rule

0.52%

Annual Yield

6.21%

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	$1,640
1 Bedroom	$1,850
2 Bedrooms	$2,270
3 Bedrooms	$3,130
4 Bedrooms	$3,540
5 Bedrooms	$4,106
6 Bedrooms	$4,599
7 Bedrooms	$4,967
8 Bedrooms	$5,215

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	$2,270	$438,912	0.52%	F
3BR	$3,130	$551,801	0.57%	F
4BR	$3,540	$621,373	0.57%	F
5BR	$4,106	$689,238	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

14,634

Median Household Income

$101,938

Housing Units

5,579

Renter Percentage

33.2%

Occupancy Rate

94.2%

Renter Occupied

1,745

ZIP code 98446, located in Clover Creek, WA, falls within the Tacoma, WA HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 98446 in fiscal year 2024 is set at $2030, slightly above the area's average market rent of $2,081. This indicates that while rents in Clover Creek are marginally higher than the metro average, they still closely align with typical expectations.

The median home value in Clover Creek is $560,310, which is notably higher than the average home value in the Tacoma, WA HUD Metro FMR Area. This suggests that Clover Creek is a premium sub-market within the broader metro area, commanding higher property values due to its location, amenities, or other factors that make it desirable.

The renter share in ZIP 98446 stands at 33.2%, which is relatively consistent with many ZIP codes within the Tacoma, WA HUD Metro FMR Area. However, the combination of a significant renter share and a below-average rent relative to home values could signal a potential sweet spot for Section 8 housing. Landlords in this ZIP code might find an opportunity to attract tenants through Section 8 vouchers without necessarily having to offer rents significantly below market rates.

To further contextualize, let’s consider how these figures stack up against the broader Tacoma, WA HUD Metro FMR Area:

Fair Market Rent (FMR): At $2030, Clover Creek's FMR is competitive but not exceptionally high, suggesting it is not a value pocket where rents are significantly lower than the metro average.
Market Rent: The actual market rent of $2,081 is very close to the FMR, indicating that landlords can expect to charge rents that are reflective of the government-set guidelines.
Home Value: With a median home value of $560,310, Clover Creek is clearly a premium sub-market, likely attracting buyers willing to pay a premium for homes in this area.
Renter Share: A 33.2% renter share means that over one-third of households in Clover Creek rent their homes, providing a substantial tenant pool for landlords.

In summary, ZIP 98446 is best categorized as a premium sub-market within the Tacoma, WA HUD Metro FMR Area. Its higher home values and slightly elevated FMR suggest a more affluent demographic compared to the average ZIP code in the area. The moderate renter share, combined with below-metro average rents relative to home values, may present opportunities for landlords participating in Section 8 programs to attract tenants effectively.

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.