Location: Klickitat County, WA | Metro: Klickitat 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 | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $445,969 | 0.34% | F |
| 3BR | $2,000 | $561,964 | 0.36% | F |
U.S. Census Bureau data (2024)
In ZIP code 98635, located in Lyle, Washington, within Klickitat County, the economics of Section 8 housing vouchers can be quite straightforward when analyzed with the given figures. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,240. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent of a two-bedroom unit in this specific area.
The local market rent for a similar two-bedroom unit, according to the Census ACS data, averages $1,398. This indicates that landlords in ZIP 98635 who participate in the Section 8 program will see a discrepancy between the SAFMR and the actual market rent. However, the SAFMR is the key benchmark for voucher payments.
A landlord's reimbursement under the Section 8 program involves the tenant contributing a portion of their income towards the rent, typically 30% of their adjusted monthly income. The voucher then covers the difference up to the SAFMR limit. For instance, if a tenant's contribution is $372 (based on a 30% contribution rate), the total reimbursement would be calculated as follows:
The voucher payment would be $1,240 minus the tenant's contribution of $372, equating to $868. This is the amount the voucher would cover, plus any utility allowances that might apply. Utility allowances are additional payments made by the voucher program to help cover the cost of utilities. These allowances vary but are generally modest, often around $100-$200 per month depending on the region and the type of utilities used.
In summary, the typical reimbursement gap for a two-bedroom apartment in ZIP 98635 is $158 ($1,398 - $1,240). This means landlords will need to accept a rent that is $158 below the market average for a two-bedroom unit to remain competitive while participating in the Section 8 program. There are no surplus funds available; rather, landlords must adjust their expectations to align with the SAFMR guidelines set by the program.
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.