Section 8 Fair Market Rent (FMR) for ZIP 98584 - 2027

Investment Score for ZIP 98584

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,160
1 Bedroom	$1,220
2 Bedrooms	$1,590
3 Bedrooms	$2,200
4 Bedrooms	$2,350
5 Bedrooms	$2,726
6 Bedrooms	$3,053
7 Bedrooms	$3,297
8 Bedrooms	$3,462

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,220	$354,408	0.34%	F
2BR	$1,590	$391,690	0.41%	F
3BR	$2,200	$451,868	0.49%	F
4BR	$2,350	$492,710	0.48%	F
5BR	$2,726	$566,609	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98584 (Shelton, WA) #### Section 8 Voucher Dynamics In ZIP code 98584, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1380 per month for 2026. This represents 21.1% of the median household income of $78,610, which is relatively affordable compared to other areas. However, it is important to note that the actual rent charged by landlords can be significantly higher. The Zillow median price for a two-bedroom home in Shelton is $382,690, which translates to a price-to-FMR ratio of 23.1x. This indicates that the actual rental market is much more expensive than the FMR, creating a significant constraint for voucher holders who must find units within the FMR limit. #### Affordability & Renter Profile The population of Shelton is 40,606, with 20.2% of residents being renters. Given that the occupancy rate is 84.6%, it suggests that the rental market is fairly tight, with limited availability of units. The median household income of $78,610 provides some context on the economic profile of the area. While the FMR for a two-bedroom unit is $1380, which is 21.1% of the median income, the actual rental prices are likely to be higher due to the high price-to-FMR ratio. This makes it challenging for low-income renters to find affordable housing without assistance. The tight market conditions mean that there is a strong demand for rental properties, but the supply is constrained, leading to higher rents. #### Investor Angle From an investor perspective, the ZIP code 98584 offers mixed opportunities. The FMR for a two-bedroom unit is $1380, but the actual median rental price is likely to be much higher given the price-to-FMR ratio. If an investor is willing to accept Section 8 vouchers, they would need to ensure that their rental property meets the criteria for voucher acceptance and is priced at or below the FMR. However, the high price-to-FMR ratio suggests that the market is generally favorable for cash flow if the investor can charge above the FMR. The investment grade for this ZIP code would depend on the ability to secure tenants who can afford the higher rents. Given the tight market conditions and the high demand for rental properties, investors could potentially achieve positive cash flow even at FMR levels. However, the competition for tenants willing to pay above the FMR is intense, which could impact the overall profitability. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on developing or acquiring units that can be rented at or near the FMR levels. For example, a two-bedroom unit priced at $1380 per month would be attractive to Section 8 voucher holders. This strategy would help in securing stable long-term tenants and complying with the program requirements. 2. **Consider Location-Specific Amenities**: Given the high price-to-FMR ratio, adding amenities such as laundry facilities, parking, and energy-efficient appliances could make a property more attractive to higher-paying tenants. These amenities can justify higher rents and improve cash flow, especially if the investor is not strictly bound to accepting only Section 8 vouchers. 3. **Evaluate Property Management Costs**: With a tight rental market, the cost of property management might be lower due to fewer vacancies. However, the high price-to-FMR ratio means that landlords who want to charge above the FMR will face competition. Careful evaluation of property management costs and strategies to reduce them can enhance the overall profitability of the investment. #### Bottom Line For Section 8-focused investors, the ZIP code 98584 presents a challenging but potentially rewarding opportunity. The high price-to-FMR ratio indicates that the market is generally favorable for those who can charge higher rents, but it also means that finding units within the FMR limit is difficult. Therefore, the recommendation is to **Hold** existing investments in this ZIP code if they are already priced at or near the FMR. For new investments, **Skip** unless the investor can develop or acquire units specifically designed to meet the needs of Section 8 voucher holders at the FMR levels. Otherwise, the high competition and limited availability of affordable units make it less attractive for strict Section 8 investments.

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.