Location: Grays Harbor 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 | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $207,553 | 0.56% | F |
| 2BR | $1,500 | $330,671 | 0.45% | F |
| 3BR | $2,080 | $414,055 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 98569 reveals a significant difference between the federal market rent (FMR) and the actual market rent. For a two-bedroom apartment, the FMR set by HUD for fiscal year 2026 is $1,360 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,600 per month.
To calculate the gross yield, we first annualize these figures. The annualized FMR for a two-bedroom apartment is $16,320 ($1,360 x 12), and the annualized market rent is $19,200 ($1,600 x 12).
Given the median home value of $338,509 in ZIP 98569, the implied gross yield based on the FMR is approximately 4.82%. This is calculated by dividing the annualized FMR by the median home value: $16,320 / $338,509 = 0.0482 or 4.82%. On the other hand, the implied gross yield based on the market rent is about 5.68%, calculated by dividing the annualized market rent by the median home value: $19,200 / $338,509 = 0.0568 or 5.68%.
The 17.0% renter density and the 71-day days on market (DOM) suggest that the market rent scenario is more realistic. With a lower renter density, there is less competition among tenants, making it harder to fill units at higher rents. Additionally, the longer DOM implies that properties are taking longer to rent out, indicating a challenging market where landlords might need to offer closer to the FMR to attract tenants.
In conclusion, while the market rent of $1,600 per month would provide a gross yield of 5.68%, the more likely scenario given the conditions in ZIP 98569 is that landlords will have to accept the FMR of $1,360 per month, resulting in a gross yield of 4.82%. Landlords and small-portfolio investors should consider these figures when evaluating potential investments in this area.
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.