Location: Klickitat County, WA | Metro: Portland-Vancouver-Hillsboro, OR-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 | $1,420 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $863,300 | 0.27% | F |
U.S. Census Bureau data (2024)
12.6% of residents in ZIP 98651 are renters, indicating a modest but stable demand for rental properties. The Fair Market Rent (FMR) for the area, set at $1660 for zip FY 2024, provides a benchmark for what landlords can charge without being considered overpriced. This figure is slightly higher than the reported market rent of $1,035 according to the Census ACS, suggesting there's room for landlords to adjust their pricing upwards towards the FMR to maximize profitability.
$822,229 is the median home value in ZIP 98651, which reflects a relatively high-value neighborhood. However, it's important to note that the median income of $90,000 may limit the number of potential homeowners who can afford to purchase at these levels. As such, the rental market remains a viable option for many, supporting the current renter share.
The lack of data on days on market (DOM) and the percentage of homes that have had their prices cut indicates a strong and consistent real estate market. Without significant fluctuations in property listings or pricing adjustments, it's reasonable to assume that properties in ZIP 98651 are selling or renting quickly, maintaining steady occupancy rates for landlords and small-portfolio investors.
In conclusion, for landlords and small-portfolio investors, ZIP 98651 presents a balanced opportunity. With a fair market rent of $1660 and a market rent of $1,035, there is a clear gap where pricing adjustments can be made to increase revenue. The high median home value of $822,229 suggests a desirable location, while the median income of $90,000 signals a need for affordable rental options. Therefore, properties that can be rented close to or at the FMR will likely attract tenants quickly. In terms of Section 8 participation, given the FMR and the current market conditions, landlords can expect to receive a voucher payment of $1660, which aligns well with the market rent and ensures competitive occupancy rates. ZIP 98651 is a good fit for Section 8 investors looking to maintain a steady cash flow.
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.