Location: Klickitat County, WA | Metro: Portland-Vancouver-Hillsboro, OR-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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $405,888 | 0.43% | F |
| 3BR | $2,360 | $485,419 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate market in Bingen, WA (ZIP 98605), presents a unique scenario for landlords and small-portfolio investors. With a median home value at $424,992, the area reflects a stable housing price environment. The absence of percentage reductions in listings and the unspecified median days on market (DOM) indicate a market where sellers maintain significant pricing power. This suggests that homes are selling close to their asking prices, with little need for price adjustments, implying a strong seller's market.
On the rental side, the Fair Market Rent (FMR) for ZIP 98605 as of fiscal year 2024 is set at $1,690. However, the current market rent stands at $1,270 according to the Census ACS data. This gap signals an opportunity for landlords to potentially increase rents, aligning more closely with the FMR. The discrepancy between FMR and actual market rents can be attributed to supply and demand dynamics, indicating a possible upward trend in rental prices as the market adjusts.
For long-term investors, the setup in Bingen suggests a cautious approach to the appreciation thesis. While the median home value is stable, the lack of specific data regarding listing reductions and DOM makes it difficult to predict future price movements. Long-hold investors should focus on the rental income potential, leveraging the difference between current market rents and the FMR to improve yields. Additionally, maintaining properties to meet or exceed the median home value will ensure they remain competitive if the market shifts towards higher appreciation rates.
The combination of a stable median home value and the potential for rental increases provides a balanced investment strategy. Landlords and investors can expect steady returns from rental income, while also positioning themselves for any future market growth. The key takeaway is to capitalize on the current rental dynamics without assuming significant appreciation in property values based on the available data.
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.