Location: Mason County, WA | Metro: Olympia-Lacey-Tumwater, WA MSA
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 | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $484,343 | 0.33% | F |
| 2BR | $1,880 | $471,917 | 0.4% | F |
| 3BR | $2,460 | $581,991 | 0.42% | F |
| 4BR | $3,030 | $644,124 | 0.47% | F |
| 5BR | $3,515 | $721,550 | 0.49% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 98502 in Washington might have several concerns regarding the viability of renting properties through the Section 8 program. Here are the key objections and the data that addresses them.
Objection 1: Will the Fair Market Rent (FMR) of $1,790 for ZIP 98502 in fiscal year 2024 be sufficient to cover the mortgage on a home priced at $574,233?
The FMR is designed to ensure that rental units are affordable for low-income families. However, it does not directly correlate with the mortgage payment required for a home valued at $574,233. To provide a clearer picture, consider the typical mortgage rate and term. For example, a 30-year fixed-rate mortgage at an average rate of 5% would result in a monthly payment of approximately $3,000 without property taxes and insurance. The $1,790 FMR would fall short of covering the mortgage payment alone. Therefore, landlords should carefully assess their financial situation and consider additional income sources or cost-saving measures to ensure profitability.
Objection 2: Is there enough renter demand at 42.6%?
The 42.6% represents the percentage of households that are renters in ZIP 98502. This figure indicates a moderate level of demand for rental properties. While it is not exceptionally high, it does suggest a reasonable pool of potential tenants. Landlords should also consider the vacancy rate and the number of available rental units to gauge the competition and the actual demand for Section 8 housing. If the vacancy rate is low and the number of available units is limited, the demand for Section 8 properties could still be strong despite the lower overall rental rate.
Objection 3: Will vouchers keep pace with the $2,008 market rents?
The voucher amount is capped at the FMR, which is set below the market rents. In ZIP 98502, the FMR of $1,790 is significantly lower than the market rent of $2,008. This means that landlords who accept Section 8 vouchers will not receive the full market rent. The Housing Choice Voucher Program aims to provide affordable housing, but it does not guarantee that voucher amounts will match market rents. Landlords must weigh the benefits of guaranteed rent payments against the lower rent received. Additionally, the program's rules and regulations can sometimes be restrictive, affecting the landlord's ability to manage the property as they see fit.
In conclusion, while ZIP 98502 offers opportunities for landlords and small-portfolio investors interested in the Section 8 program, it also presents challenges. Careful consideration of the financial aspects and local rental market dynamics is essential to make informed decisions.
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.