Location: Pacific County, WA | Metro: Pacific 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 | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $203,281 | 0.44% | F |
| 2BR | $1,120 | $339,918 | 0.33% | F |
| 3BR | $1,550 | $484,411 | 0.32% | F |
| 4BR | $1,870 | $571,150 | 0.33% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Long Beach, WA (ZIP 98631), might question whether the Fair Market Rent (FMR) of $1,010 for the fiscal year 2026 will sufficiently cover the mortgage on a median-priced home valued at $347,408. This concern arises because the rental income alone might not be enough to meet monthly mortgage obligations, especially considering property taxes and maintenance costs. However, the FMR is designed to reflect the average cost of housing in an area, which can provide a baseline for setting rental rates. For a typical mortgage scenario, a $1,010 monthly rental income could indeed contribute significantly towards covering the mortgage payment, but it would depend on the interest rate and the terms of the loan.
The investor may also doubt the viability of investing in an area where only 23.4% of households are renters. This percentage suggests that the majority of residents own their homes, potentially leading to a smaller pool of tenants. Despite this lower renter population, it's important to consider that the rental market in ZIP 98631 still exists and can be profitable. The demand for rentals, while not overwhelming, can still support a modest portfolio. Additionally, the local economy and job market play crucial roles in sustaining rental demand, so further analysis of these factors would be necessary to gauge the overall attractiveness of the rental market.
A final objection might be whether the Housing Choice Voucher program will keep pace with the market rents, currently averaging around $765. The voucher amount is critical for landlords who rely on government assistance to fill vacancies. If the voucher amount does not increase at the same rate as market rents, it could lead to a situation where landlords must subsidize the difference or face vacancies. To address this, it's essential to monitor the annual adjustments made by the Department of Housing and Urban Development (HUD) to ensure they align with the local economic conditions and housing costs. As of now, the voucher amount in 98631 is sufficient to cover the average market rent, but long-term sustainability requires continuous tracking of both market trends and HUD policies.
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.