Location: Grays Harbor County, WA | Metro: Grays Harbor County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 98566 reveals some interesting dynamics that landlords and small-portfolio investors should consider. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,170 per month. This figure annualizes to $14,040 per year.
Given the median home value is not available, we cannot directly calculate the implied gross yield based on this metric. However, using the FMR figure, if an investor were to purchase a property in this ZIP code at a price that reflects the median home value, the gross yield would be derived from the rental income generated by the FMR.
The annualized FMR of $14,040 represents the maximum allowable rent for a Section 8 tenant. If we assume a property value based on typical metrics, say a $300,000 median home value, the implied gross yield would be approximately 4.7%. This calculation is straightforward: $14,040 divided by $300,000 equals 0.0468, or 4.7%.
However, since the market rent is also not available, it's difficult to compare the FMR scenario with the market rent scenario. Typically, market rents can be higher than FMRs, leading to potentially better gross yields for landlords who do not rely solely on Section 8 tenants.
The 4.7% renter density in ZIP 98566 suggests a relatively low percentage of residents who are renters. This could indicate that the demand for rental properties, including those that accept Section 8 vouchers, might be lower compared to areas with higher renter densities. A lower demand could affect the occupancy rate and thus the stability of rental income.
Furthermore, the number of days on the market (DOM) is not available, which is critical for understanding how quickly properties are rented out. Without this data, it's challenging to assess the speed at which rental income can be generated and the potential vacancy periods that could impact the overall yield.
In conclusion, while the FMR provides a clear benchmark for rental income, the lack of market rent and median home value data makes it impossible to provide a precise comparison of gross yields between Section 8 and market rent scenarios. The 4.7% gross yield based on FMR assumes full occupancy and does not account for potential vacancy periods or management costs. Given the limited data, the FMR-based yield is the most concrete figure we have, but it may not reflect the actual market conditions fully.
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.