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 | $1,090 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,160 | $431,232 | 0.5% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 98563 hinges upon its financial metrics, specifically focusing on rental yields and market stability. The area exhibits a notable disparity between the Fair Market Rent (FMR) and the actual market rent, with the FMR for the metro area projected at $1,450 for fiscal year 2026, while the current market rent stands at $1,132. This suggests a potential for higher yields when properties are rented out under the Section 8 program, given that the government-subsidized rent can exceed the typical market rates.
However, the stability of the market must also be considered. ZIP 98563 has a significant portion of its residents as renters, with 25.6% of the population classified as such. While the median household income is relatively strong at $84,634, the lack of data on days on market (DOM) makes it difficult to assess the turnover rate and thus the overall stability of the rental market. The median home value is listed at $386,295, indicating a middle-class neighborhood that could support a mix of investment strategies.
Based on these figures, ZIP 98563 leans towards being a high-yield/low-stability market. The higher FMR compared to market rent suggests opportunities for above-average returns on investment through Section 8 tenancy. However, the absence of specific data on DOM and the reliance on government subsidies for achieving higher rents indicate a less stable environment, prone to changes in subsidy availability and tenant turnover.
To conclude, landlords and small-portfolio investors should approach ZIP 98563 with an understanding that while there is potential for high yields, they must also be prepared for the challenges associated with lower stability. This classification is driven by the comparison between FMR and market rent, the proportion of renters, and the median income levels, all of which point towards a market where quick flips might be possible but steady cash flow is less guaranteed without careful management.
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.