Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,490 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
The potential risks associated with investing in Section 8 properties in ZIP code 98490 in Unknown, WA, are significant. Firstly, tenant turnover can be a critical issue when considering the discrepancy between the market rent and the Fair Market Rent (FMR) of $1990 for FY 2024. Since the market rent data is currently unavailable, it's important to note that if the market rent is higher than the FMR, landlords may face frequent tenant turnover as vouchers do not cover the full cost of market-rate rents.
Vacancy exposure is another concern. The Days on Market (DOM) data is also not available, which makes it difficult to predict how long it might take to fill vacancies. A longer DOM can result in lost rental income, increasing the financial pressure on landlords. Additionally, without knowing the typical home value and median income in the area, it's challenging to assess the likelihood of deferred maintenance. If the median income is lower than the typical home value, tenants might struggle to afford necessary repairs, leading to potential property deterioration.
However, these risks must be weighed against the high density of renters in the area. While the exact percentage of the renter share is not specified, high renter density typically translates into a robust demand for housing vouchers. This demand can stabilize occupancy rates and provide a steady stream of tenants who are committed to their housing obligations through the voucher program.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 98490, given the uncertainties around market rent and DOM but balanced by the likely strong demand for voucher-assisted rentals.
Data Sources: FMR data from HUD (2027).
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.