Location: Pacific County, WA | Metro: Lewis County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98572, specifically Pe Ell, WA, reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. The FMR for the metro area for fiscal year 2026 is $1,380, while the Census ACS reports a market rent of $979. This means there is a $401 difference, or approximately 40.9%, between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can capitalize on this situation by accepting Section 8 vouchers. Voucher tenants provide a stable source of income, which aligns closely with the FMR rather than fluctuating market rates. This makes it a yield play, as the guaranteed payment from the government ensures a consistent cash flow.
In the broader context of ZIP 98572, only 22.7% of the population are renters, indicating a predominantly owner-occupied market. The median home value is $317,404, and the median income stands at $64,013. These factors suggest that the local economy can support higher rents, but the presence of voucher tenants helps fill units that might otherwise remain vacant due to affordability issues.
Landlords should consider the potential benefits of accepting Section 8 vouchers, including the stability of government payments and the opportunity to serve a segment of the population that may struggle to find affordable housing otherwise. However, they must also be aware of the administrative responsibilities and ensure compliance with HUD regulations to maintain eligibility.
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.