Location: Lewis County, WA | Metro: Lewis County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 98564 for Section 8 investments must evaluate several factors to make an informed decision. Here’s a structured approach:
1. Does the Fair Market Rent (FMR) of $1,140 cover the debt service on a property valued at $443,508?
Yes: The FMR of $1,140 is likely sufficient to cover the debt service, given that it represents the maximum amount a Section 8 tenant can pay for rent. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. With an FMR this high, landlords can expect to receive rental assistance that meets or exceeds these obligations.
No: If the FMR does not cover the debt service, then investing in this ZIP code for Section 8 purposes would not be financially viable. Landlords would need to ensure that the FMR is at least equal to their total monthly expenses to break even.
2. How does the market rent of $867 compare to the FMR?
Above FMR: If the market rent were above the FMR, landlords might struggle to find tenants willing to pay the higher rate. However, since the market rent is $867, which is below the FMR, landlords can potentially charge closer to the FMR without deterring tenants.
At or Below FMR: With the market rent at $867, landlords can set their rents up to the FMR level of $1,140, making it easier to attract Section 8 tenants. This scenario indicates a favorable environment for Section 8 properties, as the rent subsidy will help cover the difference between market rates and the FMR.
3. Is the combination of 21.1% renters and N/A-day days on market indicative of sufficient demand?
It Depends: The 21.1% renter population suggests there is a notable segment of potential tenants who might qualify for Section 8. However, the absence of days on market (DOM) data makes it challenging to assess how quickly properties are being leased. A low DOM would indicate strong demand, whereas a high DOM could signal a slower leasing process. Without DOM data, landlords should consider other indicators such as vacancy rates and local economic conditions to gauge demand accurately.
In summary, if the FMR of $1,140 clears the debt service for a property valued at $443,508 and the market rent of $867 is comfortably below the FMR, then ZIP 98564 presents a good opportunity for Section 8 investments. The presence of 21.1% renters supports demand but requires further investigation into leasing speed and local economic health to confirm viability.
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.