Location: Tacoma, WA | Metro: Tacoma, WA HUD Metro FMR Area
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 | $1,550 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $527,706 | 0.41% | F |
| 3BR | $2,950 | $622,088 | 0.47% | F |
| 4BR | $3,340 | $747,591 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 98580, located in Roy, WA, has a population of 11,410 individuals. Only 11.5% of the residents are renters, indicating that this is primarily a homeowner-dominated area rather than a renter-heavy market. The median household income stands at $104,684, which is significantly higher than the average market rent of $1,683.
In terms of financial feasibility, the typical rent consumes approximately 16% of the local median income. This calculation is derived from dividing the market rent by the median income: ($1,683 / $104,684) * 100 = 1.61%. However, it's important to note that the Federal Market Rent (FMR) for FY 2024 is set at $2,310, which is notably higher than the current market rent. This suggests that while the demand for Section 8 vouchers might be lower due to the smaller percentage of renters, landlords can still potentially benefit from the voucher program given the disparity between market rent and FMR.
A landlord in this ZIP code should expect tenants who are likely to be financially stable and able to meet their rental obligations without significant reliance on housing vouchers. The majority of potential tenants will have disposable incomes well above the market rent, making them suitable candidates for standard leases. However, landlords who wish to cater to those who do utilize Section 8 vouchers can still find opportunities, albeit limited, as the voucher amount exceeds the current market rent, offering a margin of profit even when dealing with subsidized housing.
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.