Location: Pacific County, WA | Metro: Pacific County, WA
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 | $910 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,810 | $340,261 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98586 in Pacific County, WA, reveals key insights for landlords and small-portfolio investors.
The rent math in this area does not work favorably for landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,160. However, the current market rent based on Census ACS data is lower at $1,036. This indicates that landlords may struggle to achieve the FMR due to market conditions, potentially leading to reduced profitability.
Regarding property acquisition, the median home value of $296,609 suggests that buying properties in this ZIP code can be moderately affordable, depending on individual financial circumstances. Unfortunately, the data on days on market (DOM) and the percentage of homes needing price cuts is not available, which means there's no direct insight into how quickly homes sell and whether they require price reductions. This lack of information could indicate stability in the housing market, but it also means that potential investors should seek additional local market intelligence before making decisions.
Tenant demand in ZIP 98586 is relatively low given its population of 1,801. Only 39.4% of the residents are renters, indicating a smaller pool of potential tenants compared to areas with higher renter shares. This low demand could make it challenging to find and retain tenants, especially if the rent is set at or near the FMR level.
In conclusion, while the median home value makes property acquisition in ZIP 98586 somewhat affordable, the mismatch between FMR and market rent, along with the modest tenant demand, suggests that this area may not be ideal for landlords seeking high returns. The focus should be on cost-effective acquisitions and setting competitive rental rates to attract and maintain tenants. Additional research into local real estate trends would be prudent to fully understand the investment landscape.
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.