Location: Lewis County, WA | Metro: Lewis 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 | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,990 | $485,169 | 0.41% | F |
U.S. Census Bureau data (2024)
In evaluating whether to purchase properties in ZIP code 98596 for Section 8 investment, follow this decision tree:
1) Does FMR ($1,380 - metro FY 2026) clear debt service on a $454,248 property?
Yes. The Fair Market Rent (FMR) of $1,380 is sufficient to cover the debt service on a property valued at $454,248. Assuming an average mortgage rate, this rental income would be adequate to meet monthly mortgage obligations.
No. If the debt service exceeds the FMR, then purchasing for Section 8 purposes is not advisable. The income generated would not be enough to sustain the financial burden of the property.
It Depends. This answer applies if the landlord has unique financing terms that could affect the outcome. For example, lower interest rates or shorter loan terms might make the FMR of $1,380 sufficient.
2) Is market rent ($1,224 - Census ACS) above, at, or below FMR?
Above. If the market rent is higher than the FMR, it indicates a strong local rental market. However, Section 8 tenants will only pay up to the FMR, so landlords must consider if they can accept a lower rent.
At or Below. If the market rent matches or falls below the FMR, there is less risk of significant rent loss compared to the market rate. This scenario supports Section 8 investment.
3) Are 14.1% renters + N/A-day days on the market (DOM) enough demand?
Yes. With 14.1% of the population renting, there is a steady demand for rental properties. However, the lack of data on days on the market (DOM) means we cannot assess how quickly rentals are filled, which could impact cash flow.
No. If the landlord requires a high turnover rate, the lack of DOM data could be problematic. A low percentage of renters combined with slow market absorption would discourage Section 8 investments.
It Depends. For landlords who are willing to wait longer for their properties to be rented, the 14.1% rental rate might still support investment. The absence of DOM data suggests a need for further investigation into local rental dynamics.
The decision to invest in ZIP 98596 for Section 8 purposes hinges on these factors. Clear debt service coverage, market rent levels relative to FMR, and rental demand are critical considerations. Landlords must weigh these elements against their own investment criteria and goals.
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.