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 | $1,500 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $470,804 | 0.44% | F |
| 3BR | $2,860 | $609,088 | 0.47% | F |
| 4BR | $3,230 | $706,284 | 0.46% | F |
| 5BR | $3,747 | $810,308 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 98466, located in University Place, WA, presents a dynamic rental market that is currently in equilibrium but leans slightly towards favoring landlords. The Fair Market Rent (FMR) for the area is set at $1870 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,965. This suggests that the actual market conditions slightly exceed the government's fair market assessment, indicating a healthy demand for rental properties.
The low price-cut share of 0.2% and a short days on market (DOM) of 8 days point to a scenario where demand meets supply effectively. Landlords can maintain their rental rates without needing to offer discounts to attract tenants. This is further supported by the median home value of $630,777, which implies a relatively stable and affluent residential base that can sustain higher rental prices.
A critical factor influencing the market dynamics is the 46.8% renter share. This high percentage of renters suggests ongoing long-term housing pressure, as a significant portion of the population is likely to continue renting rather than buying. This trend supports the idea that the rental market will remain robust, driven by a steady stream of potential tenants who are either unable or unwilling to purchase homes. As a result, landlords and small-portfolio investors should anticipate continued interest in rental properties and consider the local economy and job market as key indicators for future stability.
The interplay between these figures—FMR, ZORI, price-cut share, DOM, and median home value—paints a picture of a market where supply is closely matched with demand. However, the strong rental market and high renter share suggest that the demand side remains resilient, potentially leading to a slight edge in favor of landlords in terms of pricing power and occupancy rates.
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.