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 | $1,350 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $293,587 | 0.52% | F |
| 2BR | $1,870 | $402,193 | 0.46% | F |
| 3BR | $2,580 | $521,626 | 0.49% | F |
| 4BR | $2,920 | $634,501 | 0.46% | F |
| 5BR | $3,387 | $734,186 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 98498, Lakewood, WA, is a critical area for investors to understand due to its unique characteristics. The HUD Fair Market Rent (FMR) for this region in fiscal year 2024 is set at $1780, which is higher than the current market rent, measured by Zillow's ZORI, at $1,689. This indicates that voucher tenants can cashflow at the FMR level without requiring premium units, providing a stable income source for landlords.
To further analyze the investment potential, consider the median home value in the area, which stands at $545,243. Using this figure, we can calculate the rent-to-price ratio, revealing that the rental market is slightly undervalued compared to the property values. This ratio suggests that properties in 98498 could be more profitable when rented out, given the current market conditions.
The median days on market (DOM) for properties in this area is 34 days, indicating a relatively quick turnover rate for homes. Additionally, the price-cut share is a modest 0.3%, suggesting that the real estate market is stable and buyers are willing to pay asking prices without significant negotiation. These factors imply that the buy-versus-rent dynamics favor renting, particularly for Section 8 investors.
In conclusion, the strongest angle for Section 8 investors in ZIP 98498 is stability. With voucher tenants able to cover rents at or above the market rate, coupled with a stable real estate market, this area offers reliable and consistent returns for those looking to invest in rental properties.
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.