Location: Mason County, WA | Metro: Grays Harbor 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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $320,392 | 0.38% | F |
| 3BR | $1,700 | $426,698 | 0.4% | F |
| 4BR | $1,890 | $519,060 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 98541 (Elma, WA) provides insight into the potential returns for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) for a 2-bedroom apartment set at $1,140 per month for fiscal year 2026, we can calculate an annualized rental income of $13,680. The median home value in Elma is $368,007. Based on these figures, the implied gross yield when using the FMR would be approximately 3.72%. This is calculated by dividing the annual rental income ($13,680) by the median home value ($368,007).
In contrast, the Census ACS reports a market rent of $974 per month for a 2-bedroom unit. Annualizing this figure gives us $11,688. When this amount is divided by the median home value, the implied gross yield drops to about 3.18%. This calculation is based on the actual market conditions and reflects what most tenants might be willing to pay without the subsidy.
Given the 21.3% renter density in Elma, it is clear that the majority of homeowners are likely to be owner-occupiers rather than landlords. This suggests that the unsubsidized market rent scenario is more reflective of the general housing situation in the area. However, for those interested in Section 8 participation, the higher FMR subsidy can offer a more attractive gross yield, albeit contingent upon securing a tenant who qualifies for the program.
The N/A-day DOM (Days on Market) indicates that there is insufficient data to determine how quickly properties are typically rented out in Elma. This could imply either a stable rental market where vacancies are rare, or a less active market where properties may stay on the market longer. In either case, the gross yields derived from the FMR and market rent provide a clear comparison for investment potential.
For investors looking to maximize returns, the Section 8 program offers a higher gross yield at 3.72%, compared to the unsubsidized market rent yield of 3.18%. However, the decision to participate should also consider the administrative complexities and eligibility requirements associated with the Section 8 program.
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.