Location: Mason County, WA | Metro: Mason County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 98560 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,260, while the current market rent is not available, indicating a potential reliance on historical or projected data for investment decisions.
Given that the FMR is higher than the market rent, landlords can leverage this situation to maximize their yields. Specifically, the difference between the FMR and the market rent represents a subsidy that can be applied to properties, allowing landlords to receive a higher rental income than what the market might currently bear. This discrepancy creates an opportunity for landlords to attract voucher tenants who can help fill units at rates above the current market level but still within the bounds of the FMR.
The percentage gap cannot be calculated precisely without the current market rent figure, but the principle remains clear: when FMR exceeds market rents, it transforms the property into a yield play. Landlords can effectively benefit from government subsidies, ensuring steady and potentially higher-than-average returns on their investments.
In the broader context of ZIP 98560, where 24.4% of residents are renters, the median home value is not specified, and the median income stands at $72,596, the Section 8 program provides a critical lifeline for affordable housing. For small-portfolio investors, understanding and capitalizing on this gap can be a strategic advantage, enabling them to offer housing at rates that are both attractive to voucher holders and profitable to themselves.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. While the FMR provides a guaranteed floor for rental income, landlords must also account for the administrative overhead and potential delays in receiving payments. Furthermore, the reliance on government subsidies means that rental income is subject to policy changes and funding fluctuations.
Despite these challenges, the gap between FMR and market rent makes ZIP 98560 a viable location for Section 8-related investments. By anchoring their strategies in the specific economic conditions of the area, landlords can ensure they are making informed decisions that balance risk and reward.
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.