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 | $1,290 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $415,762 | 0.43% | F |
| 3BR | $2,470 | $579,705 | 0.43% | F |
| 4BR | $2,800 | $724,615 | 0.39% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 98465, located in Tacoma, WA, presents a complex scenario for landlords and small-portfolio investors. With a median home value at $584,702, it's evident that the housing market has been appreciating. However, the absence of percentage data on listings being reduced and the median days on market (DOM) suggests a stable market condition without significant fluctuations in recent times.
The setup implies that landlords and investors have moderate pricing power over the next 12-24 months. This stability can be leveraged to maintain consistent rental income, but it also means that rapid appreciation is unlikely. The Federal Market Rent (FMR) for ZIP 98465 in fiscal year 2024 is projected to be $1,750, while the current market rent, measured by ZORI, stands at $1,951. This indicates a slight premium for market rents over the government-subsidized rates, which could be advantageous for those seeking to rent outside of Section 8 programs.
For long-term investors, the realistic appreciation thesis is grounded in the area's economic fundamentals and broader market trends. Tacoma's proximity to Seattle, the state's largest city, offers potential spillover benefits from its robust economy. However, the lack of significant percentage increases in home values and the stable DOM suggest that appreciation will likely remain modest unless there are substantial changes in local employment, infrastructure, or demographic shifts.
In conclusion, the current market dynamics in ZIP 98465 favor steady investment returns rather than speculative gains. Landlords and small-portfolio investors should focus on maintaining competitive rental rates and managing costs effectively to ensure profitability. While the median home value provides a strong anchor point for valuations, the slight gap between FMR and ZORI suggests opportunities for market-rate rentals.
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.