Location: Lewis County, 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 | $437,801 | 0.4% | F |
| 3BR | $2,360 | $521,959 | 0.45% | F |
| 4BR | $2,960 | $642,632 | 0.46% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 98579, Rochester, WA, stands at $99,411. This figure provides a baseline for assessing the financial capacity of households in the area. The market rate for rent is reported at $1,532 according to the Census ACS data. When comparing this to the median income, it becomes evident that the average household could indeed manage these rental costs, considering a typical rent-to-income ratio.
The Federal Market Rent (FMR) for ZIP code 98579 in fiscal year 2024 is set at $1,520, closely matching the market rate. This indicates that the Housing Choice Voucher program, commonly known as Section 8, offers payments that are nearly on par with the local market conditions. For tenants relying on vouchers, this means minimal out-of-pocket expenses beyond their share of utilities and other non-rent related costs.
With 19.8% of the 14,048 population being renters, the competition among landlords is relatively moderate. However, the affordability gap, which is the difference between the market rate and the amount that low-income households can afford, plays a significant role in this competition. Given the median income and the fact that some households might have lower incomes, there will be a segment of the population that requires assistance to meet market rates, thereby increasing demand for subsidized housing options.
The takeaway for landlords considering whether to accept vouchers versus cash-paying tenants is that the financial disparity between market rates and voucher payments is minimal in this area. Accepting vouchers can help fill units that might otherwise remain vacant due to affordability issues, ensuring steady and reliable income. Moreover, landlords who participate in the voucher program can contribute to the stability of the community while maintaining competitive occupancy rates.
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.