Location: Longview-Kelso, WA | Metro: Longview-Kelso, 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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,060 | $611,422 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 98603 revolves around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 98603 in fiscal year 2024 is set at $1520, while the average market rent is $1395. This means there is a $125 shortfall, or approximately 8.2%, when comparing the FMR to the market rent.
This gap indicates that voucher tenants may accept lower rents than the market rate, making 98603 a yield play for landlords and small-portfolio investors. With 29.0% of residents being renters and a median income of $76,481, landlords can benefit from the government subsidizing the rent through vouchers. However, this also implies that the rental income might not fully cover the property expenses, leading to a lower net operating income (NOI).
The median home value in 98603 is $559,319, which is slightly higher than the $549,707 reported by REPIT for the same period. Given that homes cost about 7.2 times the median income, the area is considered expensive relative to the income levels. Additionally, the 5-year compound annual growth rate (CAGR) for home values stands at 6.5%, indicating a strong appreciation trend.
In summary, the Section 8 program in 98603 presents an opportunity for investors willing to manage properties with a focus on voucher tenants. While the gap between FMR and market rent exists, the long-term appreciation of home values can offset the lower NOI, making it a viable investment strategy for those who can handle the operational challenges.
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.