Section 8 Fair Market Rent (FMR) for ZIP 98530 - 2027

Location: Olympia-Lacey-Tumwater, WA | Metro: Olympia-Lacey-Tumwater, WA MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,390
1 Bedroom	$1,520
2 Bedrooms	$1,770
3 Bedrooms	$2,360
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

619

Median Household Income

$80,682

Housing Units

231

Renter Percentage

20.7%

Occupancy Rate

96.1%

Renter Occupied

A landlord considering ZIP 98530 for Section 8 investments must evaluate several key factors to make an informed decision.

1) Does FMR $1350 (ZIP FY 2024) clear debt service on a $310,353 property?

No: The Fair Market Rent (FMR) of $1350 for ZIP 98530 does not sufficiently cover the debt service on a property valued at $310,353. This indicates that relying solely on Section 8 income would not be financially viable, as the rental income would fall short of meeting mortgage obligations and other costs associated with property ownership.

2) Is market rent $1,338 (Census ACS) above, at, or below FMR?

Below FMR: The market rent of $1,338 is slightly below the FMR of $1350. This suggests that the local rental market might not offer higher returns compared to Section 8 rents, which could limit the potential for non-governmental tenants to pay more than the subsidized rate.

3) Are 20.7% renters + N/A-day days on market (DOM) enough demand?

It Depends: With 20.7% of residents being renters, there is a notable demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be leased. In areas where DOM is high, even if there is a significant percentage of renters, securing tenants can be challenging and time-consuming. Conversely, low DOM indicates strong demand and quick leasing.

To summarize, the decision to invest in ZIP 98530 for Section 8 purposes hinges on whether the landlord is willing to accept lower-than-market rents and can manage the financial constraints of the FMR not covering the debt service on a $310,353 property. Additionally, the landlord must consider the overall rental demand and the specifics of how long it takes to lease properties in the area. Without concrete data on DOM, the final decision relies heavily on the landlord's risk tolerance and investment strategy.

Data Sources: FMR data from HUD (2027). 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.