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 | $410,315 | 0.43% | F |
| 3BR | $2,360 | $551,458 | 0.43% | F |
| 4BR | $2,960 | $630,390 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 98589, located in Tenino, WA, has a population of 7,010 residents. With only 17.8% of the population being renters, it is predominantly a homeowner-dominated area rather than a renter-heavy zone. This indicates that the demand for rental properties, particularly those accepting Section 8 vouchers, is relatively low compared to areas with higher percentages of renters.
The median household income in this area stands at $83,855, which provides a context for evaluating the affordability of the average market rent of $1,419. To put this into perspective, the typical rent eats up approximately 17.5% of the local median income. This percentage is calculated by dividing the market rent by the annual median income and multiplying by 100. In comparison, the Fair Market Rent (FMR) for the area is set at $1,560 for FY 2024, indicating that the market rent is slightly below the FMR.
Given these figures, landlords in ZIP 98589 can expect tenants who are likely to have stable employment and income sources. The lower proportion of renters suggests that competition for Section 8 vouchers might be less intense, allowing landlords to maintain a balance between voucher tenants and those paying market rates. However, the relatively low number of renters also means that the pool of potential tenants might be smaller, necessitating a careful approach to property management and maintenance to attract and retain tenants.
In summary, while ZIP 98589 offers a moderate environment for landlords looking to cater to Section 8 tenants, the expectation should be for a smaller tenant pool with a mix of voucher holders and those able to pay closer to the market rate. The typical rent is affordable for most local households, consuming just under 18% of their income, making it a viable option for many residents.
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.