Location: Olympia-Lacey-Tumwater, WA | Metro: Olympia-Lacey-Tumwater, WA MSA
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 | $1,390 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,770 | $438,512 | 0.4% | F |
| 3BR | $2,360 | $530,355 | 0.44% | F |
| 4BR | $2,960 | $588,641 | 0.5% | F |
U.S. Census Bureau data (2024)
To determine if you should invest in ZIP 98576 (Rainier, WA) for Section 8 properties, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1520 cover the debt service on a property valued at $519,658?
No. The FMR of $1520 is unlikely to cover the debt service on a property of that value. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property priced at $519,658, the monthly debt service would likely exceed $1520, making it financially unfeasible to rely solely on Section 8 rents.
Step 2: Is the market rent of $1,564 above, at, or below the FMR?
At. The market rent of $1,564 is very close to the FMR of $1520, indicating that the rental income from non-Section 8 tenants would be nearly identical to what you could expect from a Section 8 tenant. This suggests that there is little financial advantage to choosing between the two types of tenants based on rent alone.
Step 3: Are the 12.1% of renters and the unknown days on market (DOM) sufficient to meet demand?
It depends. With 12.1% of residents being renters, the demand for rental properties is present but limited. However, the unknown days on market (DOM) make it difficult to assess how quickly you can expect to fill vacancies. If the DOM is low, indicating quick turnover, then the demand might be considered sufficient despite the relatively low percentage of renters. Conversely, if the DOM is high, it suggests a slower rental market, which could pose challenges in filling vacancies promptly.
In conclusion, while there is some demand for rental properties in ZIP 98576, the FMR does not appear to sufficiently cover the debt service on a property valued at $519,658. Additionally, the market rent is nearly equal to the FMR, offering no significant financial incentive to pursue Section 8 properties over other rental options. The decision to invest should be made cautiously, considering the specific details of your investment strategy and the local rental market dynamics.
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.