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 | $1,790 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $373,410 | 0.5% | F |
| 2BR | $2,200 | $447,910 | 0.49% | F |
| 3BR | $2,870 | $492,828 | 0.58% | F |
| 4BR | $3,550 | $578,587 | 0.61% | D |
| 5BR | $4,118 | $600,307 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 98513, located in Lacey, WA, reveals a significant gap between the Fair Market Rent (FMR) and the market rent, known as the Zillow Rent Index (ZORI). The FMR for the area is set at $2150 for fiscal year 2024, while the ZORI indicates that the market rent is $2,257. This represents a difference of $107, or approximately 4.97%, with the market rent being slightly higher than the FMR.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting Section 8 tenants. While the program ensures timely payment of rent through vouchers, the compensation rate is pegged to the FMR, which means landlords will receive less than the open-market rent for their properties. For instance, if a landlord's property typically rents for $2,257, they would only receive $2,150 under the Section 8 program, resulting in a loss of $107 per month.
In the context of Lacey, WA, where 20.5% of residents are renters, and the median home value stands at $507,958, the decision to participate in the Section 8 program must be weighed against these factors. The median household income in the area is $113,053, suggesting that there is a segment of the population that may struggle to afford market-rate rents, making the Section 8 program an attractive option for them.
Landlords considering Section 8 should also factor in the administrative aspects of the program, such as the need to comply with HUD standards and the potential for increased scrutiny. However, the program can offer a steady stream of rental income and a guaranteed tenant, reducing vacancy risks and providing a predictable cash flow.
To summarize, the gap between the FMR and market rent in ZIP 98513 is $107, or about 4.97%. This means landlords accepting Section 8 tenants will have to accept a lower rent than what the market offers, but it also provides a stable investment opportunity in a region where a significant portion of the population relies on rental housing.
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.