Section 8 Fair Market Rent (FMR) for ZIP 98632 - 2027

Investment Score for ZIP 98632

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,170
2 Bedrooms	$1,450
3 Bedrooms	$2,010
4 Bedrooms	$2,420
5 Bedrooms	$2,807
6 Bedrooms	$3,144
7 Bedrooms	$3,396
8 Bedrooms	$3,566

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,170	$245,796	0.48%	F
2BR	$1,450	$301,683	0.48%	F
3BR	$2,010	$399,274	0.5%	F
4BR	$2,420	$470,460	0.51%	F
5BR	$2,807	$523,236	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98632 (Longview, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98632 is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1450, which represents 26.2% of the median household income in Longview, WA. This suggests that the FMR is relatively affordable compared to the local income levels. However, the actual rental prices can be significantly higher. According to Zillow, the median price for a two-bedroom home in this area is $294,406, which translates to a monthly mortgage payment of approximately $1470 if financed at a typical rate. Given the high price-to-FMR ratio of 16.9x, it is clear that many landlords will find it challenging to operate at the FMR level without substantial subsidies. The constraints for voucher holders include finding units that accept vouchers and are priced within the FMR guidelines, which can be difficult given the disparity between FMR and actual rental costs. #### Affordability & Renter Profile With a population of 50,635 and a renter percentage of 39.2%, there are approximately 19,844 renters in Longview, WA. The occupancy rate stands at 94.6%, indicating a fairly tight rental market. The median household income is $66,305, which means that a significant portion of the population may struggle to afford market-rate rents. The FMR for a two-bedroom unit at $1450 is only slightly above the average renter’s affordability threshold, but the actual rental prices are much higher, making it difficult for many residents to find suitable housing without assistance. The high price-to-FMR ratio suggests that the market is overpriced relative to what most renters can afford, creating a potential gap between demand and supply at FMR levels. #### Investor Angle From an investor perspective, operating at the FMR level can be challenging due to the high price-to-FMR ratio. A two-bedroom property priced at the FMR of $1450 would likely be cash-flow negative when considering the median home price of $294,406. This implies that the monthly mortgage payment would exceed the FMR, leaving little room for profit unless the property is purchased below market value or receives additional subsidies. The investment grade for properties in this ZIP code would be low for those strictly relying on FMR rents, as the financial viability of such investments is questionable without significant cost savings or other forms of support. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should consider acquiring properties that fall into the lower rent categories, such as one-bedroom units priced at $1200 or less. These units are more likely to be financially viable under the FMR guidelines, as they represent a smaller proportion of the median household income ($18.1% for a one-bedroom unit). Additionally, these units are more likely to attract tenants who are eligible for Section 8 vouchers. 2. **Seek Out Affordable Housing Programs**: Given the high price-to-FMR ratio, investors might benefit from exploring programs that provide additional subsidies or incentives for affordable housing. This could help bridge the gap between the actual purchase price and the rental income generated at FMR levels. For example, partnerships with local government initiatives or non-profit organizations could offer financial support or tax breaks. 3. **Consider Multi-Family Properties**: Multi-family properties, particularly those with multiple one-bedroom or studio units, may be more financially feasible. These properties can spread the fixed costs across several units, potentially allowing for better cash flow management. Additionally, multi-family units often have higher occupancy rates, which can be beneficial in a market with a high overall occupancy rate like Longview. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the ZIP code 98632 presents a challenging environment. The high price-to-FMR ratio makes it difficult to achieve positive cash flow without significant cost reductions or additional subsidies. Therefore, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can secure properties at a substantially discounted price or leverage additional funding sources. If investors decide to proceed, they should focus on lower-rent units and explore affordable housing programs to mitigate financial risks. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 98632, highlighting the challenges and opportunities for Section 8-focused investors. The key takeaway is that while the market has a strong demand for rental housing, the high prices and limited FMR coverage make it a risky investment without careful planning and strategic approaches.

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.