Location: Lewis County, WA | Metro: Lewis County, WA
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 | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $369,156 | 0.39% | F |
| 3BR | $1,860 | $497,525 | 0.37% | F |
| 4BR | $2,170 | $564,381 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 98532, which encompasses Chehalis, WA, in Lewis County, the economics of Section 8 housing can be dissected using specific figures. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this ZIP is set at $1,270 for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay towards rent for a unit of this size. However, it's important to note that the local market rent, based on Census ACS data, is lower at $1,142.
A landlord participating in the Section 8 program receives reimbursement from the government for a portion of the rent. This reimbursement is calculated based on the tenant's income, with the tenant typically paying 30% of their adjusted monthly income towards rent. For example, if a tenant's monthly income is $1,500, they would pay $450 towards rent. The remainder of the rent, up to the SAFMR limit, is covered by the housing authority. In this case, the housing authority would cover the difference between the tenant's payment and the SAFMR, up to $1,270.
Beyond the base rent, landlords also receive utility allowances. These allowances vary but are designed to help cover the cost of utilities such as electricity, gas, water, and sewer. For a two-bedroom apartment in ZIP 98532, the utility allowance might be around $200 per month, though this can fluctuate depending on specific circumstances and the housing authority's guidelines.
To illustrate, let's assume a tenant's income is $1,500 per month, and they pay 30%, or $450, towards rent. The housing authority then covers the remaining $820, bringing the total to the SAFMR of $1,270. If the utility allowance is $200, the landlord receives an additional $200 for utilities, making the total reimbursement $1,470.
This scenario leaves a surplus for the landlord, as the local market rent is only $1,142. Therefore, the landlord receives $1,470 in total reimbursement, exceeding the typical market rate by $328 per month. This surplus can be seen as a financial advantage, given that the landlord is guaranteed a certain level of income regardless of the local rental market conditions.
The key takeaway for landlords and small-portfolio investors is that the Section 8 program in ZIP 98532 provides a stable source of income that often exceeds the local market rent. This can make properties in this ZIP attractive for those looking to secure a steady stream of rental payments without the volatility associated with the private rental market.
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.