Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,540 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 98558 is based on the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2140. However, the market rent for the area is currently unreported, indicated by 'N/A'. This lack of data presents a challenge in providing a precise percentage gap, but it does allow us to discuss the implications of the known FMR.
If the FMR exceeds the market rent, landlords should consider that voucher tenants can be a reliable source of income. The predictability of government payments ensures a steady cash flow, which makes properties in this scenario a strong yield play. Landlords benefit from the guaranteed rental income, even if it's slightly above the typical market rate.
Conversely, if the FMR is lower than the market rent, landlords must be aware of the potential costs associated with accepting housing voucher tenants. The difference between what the voucher covers and the actual market rent must be absorbed by the landlord, reducing profit margins. This situation requires careful consideration of property management expenses and maintenance costs.
The overall context of ZIP 98558 is also important. With N/A% of residents being renters, the median home value and median income are both unreported ('N/A'). These missing figures suggest a need for further investigation into local demographics and economic conditions to fully understand the impact of Section 8 on investment yields. Landlords and small-portfolio investors must weigh these factors against the benefits and drawbacks of participating in the Section 8 program.
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.