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 | $950 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $640,000 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 98650, located in Klickitat County, WA, reveals critical insights for landlords and small-portfolio investors. The first question to address is whether the rent math works. According to the Fair Market Rent (FMR) set at $1,260 for the fiscal year 2026, compared to the current market rent of $1,211 based on Census ACS data, the rent levels are nearly aligned. This suggests that landlords can expect to charge close to the FMR without significant resistance from tenants, making the rent math favorable.
Regarding the affordability of property acquisition, the median home value stands at $626,369. Given that the day DOM (Days On Market) and the percentage of homes needing price cuts are not available, it's crucial to focus on the median home value. At this price point, acquiring properties in ZIP 98650 is moderately expensive but could be justified if the rental income justifies the investment. However, the lack of DOM and price-cut share data makes it challenging to assess the ease of selling or adjusting prices to meet market conditions.
Tenant demand is another key factor. With a total population of 1,188 and a renter share of 15.2%, the pool of potential tenants is limited. This means that landlords must ensure their properties are well-maintained and competitively priced to attract and retain tenants. Given the small population size, any changes in local economic conditions or employment rates could significantly impact the number of renters.
In summary, the rent math in ZIP 98650 is reasonable, aligning closely with the FMR. Property acquisition is moderately costly, with a median home value of $626,369, though without DOM and price-cut share data, the full picture remains incomplete. Tenant demand is constrained by the low population and limited renter share. Landlords should proceed cautiously, considering the potential risks associated with a small tenant pool and the moderate expense of entry into this market. Despite these challenges, the alignment between market and FMR rents offers a solid foundation for rental investments.
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.