Location: Lewis County, WA | Metro: Olympia-Lacey-Tumwater, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,390 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
U.S. Census Bureau data (2024)
The median income in ZIP code 98568 stands at $84,531, which provides a foundational context for understanding rental affordability. At the market rate of $1,046, as reported by the Census Bureau's American Community Survey (ACS), a household in this area would spend approximately 12.4% of their annual income on rent alone. This percentage is generally considered manageable under standard financial guidelines, which typically suggest that housing costs should not exceed 30% of a household's income.
However, when comparing the market rate to the Fair Market Rent (FMR) standard set for Section 8 vouchers, which is $1,800 for zip code 98568 in fiscal year 2024, a significant gap emerges. The FMR is notably higher than the current market rate, indicating that the voucher program is designed to cover rents that are above what is typical for the area. This means that a household receiving a Section 8 voucher could potentially afford a rental unit that costs nearly twice the market rate.
The population of 98568 is 3,050, with 16.0% being renters. This relatively low percentage of renters suggests a smaller pool of potential tenants who might be looking for units outside of the voucher system. Landlords in this area face a unique challenge: they must balance the desire for higher rent payments against the reality of a tenant pool that may not be able to afford them without assistance.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While the FMR of $1,800 offered by the voucher program is significantly higher than the market rate, the limited number of renters in the area means competition for tenants could be fierce. Landlords should weigh the benefits of guaranteed payments through vouchers against the possibility of finding cash-paying tenants willing to pay the market rate of $1,046. Given the high FMR relative to the local economy, embracing voucher tenants could provide a more stable and predictable income stream, while also helping to address the affordability gap for many in the community.
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.