Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 98447 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1710 per month for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to 98447.
To understand what a voucher actually pays, consider the components involved. The tenant contributes 30% of their adjusted income toward rent, while the remaining amount is covered by the voucher up to the SAFMR limit. Additionally, utility allowances are provided, which vary but are typically around $300-$400 per month depending on the size of the unit and regional energy costs.
Let's walk through an example. If a tenant has an adjusted monthly income of $1000, they would contribute 30%, or $300, toward rent. Assuming a utility allowance of $350, the total voucher contribution would be $1650 ($300 tenant contribution + $1350 voucher subsidy). However, since the SAFMR for a two-bedroom in this ZIP is $1710, the landlord will receive the full $1710, including the utility allowance.
In ZIP 98447, the local market rent is currently unavailable, which can make direct comparisons challenging. However, if the market rent were higher than the SAFMR, landlords would face a reimbursement gap, where the voucher payment does not cover the full market price. Conversely, if the market rent were lower than the SAFMR, landlords might see a surplus, where the voucher payment exceeds the typical market rate.
To illustrate the reimbursement gap or surplus, let's assume the market rent for a two-bedroom in ZIP 98447 is $1800 per month. In this scenario, the landlord would have a reimbursement gap of $90 per month, as the voucher only covers up to $1710. If the market rent were $1600, then there would be a surplus of $110 per month, meaning the voucher payment exceeds the market rate.
Note that these figures are based on the SAFMR for ZIP 98447 and do not account for any differences in actual market rents, which may vary. Landlords should monitor local rental trends to determine if the SAFMR aligns closely with market conditions.
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.