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 | $970 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $231,207 | 0.49% | F |
| 2BR | $1,400 | $290,553 | 0.48% | F |
| 3BR | $1,940 | $403,216 | 0.48% | F |
| 4BR | $2,340 | $461,818 | 0.51% | F |
| 5BR | $2,714 | $502,990 | 0.54% | F |
U.S. Census Bureau data (2024)
Investors considering Kelso, WA (ZIP 98626), must weigh several factors before committing to a property investment under the Section 8 program. The primary concern revolves around whether the Fair Market Rent (FMR) of $1,330 for the fiscal year 2024 can sufficiently cover the mortgage on a home valued at $385,833. To address this, it's important to note that the FMR represents the average rental price for a property, which is significantly lower than the mortgage payment on a home of that value. However, the FMR does not account for the potential appreciation of the property over time nor the possibility of renting out additional units or spaces. It also does not consider the potential benefits of owning a property in a stable area.
The second objection is whether there is sufficient demand among renters, given that only 31.5% of the population are renters. This percentage suggests that the rental market is relatively smaller compared to homeownership, but it's crucial to understand that this figure alone does not indicate the health of the rental market. The actual number of renters in Kelso can be substantial enough to support a Section 8 investment. Additionally, the local economy and job market play significant roles in sustaining rental demand. A deeper analysis of employment trends and the local housing market would provide a clearer picture.
A final concern is whether Section 8 vouchers will keep pace with the market rent, which stands at $1,612. Historically, voucher amounts have lagged behind market rates, leading to questions about affordability for tenants. In Kelso, the gap between the FMR and market rent indicates that there might be challenges in finding tenants who can afford the difference. However, the government periodically adjusts voucher amounts to reflect changes in the cost of living and housing markets. Investors should monitor these adjustments and consider the long-term stability they offer.
While the data provides insights into these concerns, it's important to recognize that investing in Section 8 properties involves more than just numbers. Local regulations, tenant management, and the broader economic context all contribute to the success of such investments. Therefore, investors should conduct thorough due diligence beyond the figures presented here.
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.