Location: Olympia-Lacey-Tumwater, 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 | $1,610 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $426,563 | 0.4% | F |
| 2BR | $1,980 | $425,801 | 0.47% | F |
| 3BR | $2,590 | $555,800 | 0.47% | F |
| 4BR | $3,200 | $617,930 | 0.52% | F |
| 5BR | $3,712 | $687,902 | 0.54% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 98512, Olympia, WA, include tenant turnover and vacancy exposure. The market rent stands at $1,917, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,820. This discrepancy suggests that tenants may struggle to cover the higher market rents, leading to frequent turnovers. With an average Days on Market (DOM) of 20 days, there's a significant risk of prolonged vacancies if a suitable tenant isn't found quickly. Additionally, the typical home value of $555,635 contrasts sharply with the median income of $101,530, indicating that many properties might suffer from deferred maintenance due to limited financial resources.
However, these risks must be weighed against the high renter share in the area, which is 27.6%. High renter density generally translates into a robust demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate the risks associated with tenant turnover and vacancy exposure, as there is likely to be a steady pool of potential tenants.
In conclusion, the first-time Section 8 landlord in ZIP code 98512 faces moderate risk. While there are notable challenges such as tenant turnover and deferred maintenance, the high renter share provides a buffer that can support consistent occupancy and demand for housing assistance programs.
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.