Section 8 Fair Market Rent (FMR) for ZIP 98661 - 2027

Investment Score for ZIP 98661

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	$1,420
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

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	$1,510	$284,785	0.53%	F
2BR	$1,730	$360,472	0.48%	F
3BR	$2,360	$460,615	0.51%	F
4BR	$2,800	$542,411	0.52%	F
5BR	$3,248	$671,199	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98661 (Vancouver, OR) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98661, as defined by HUD for 2026, is set at $1800 for a two-bedroom unit. This figure represents 28.1% of the median household income in the area, which stands at $76,913. However, the actual median rent for a two-bedroom unit on Zillow is $357,323, translating to a monthly rent of approximately $2977.77 based on a typical mortgage payment scenario. The price-to-FMR ratio is 16.5x, indicating that actual market rents are significantly higher than the FMR. This substantial difference between the FMR and actual market rents creates significant constraints for voucher holders. A voucher holder would find it challenging to secure a two-bedroom rental unit at the FMR rate due to the high demand and limited supply of affordable units. For instance, a voucher holder with a $1800 limit would struggle to compete in a market where the average rent is nearly double that amount. #### Affordability & Renter Profile ZIP code 98661 has a population of 50,743, with 57.3% of residents being renters. The occupancy rate is 94.7%, suggesting a tight rental market with little excess capacity. Given the median household income of $76,913, the majority of renters likely fall into the middle-income bracket, although some may be low-income individuals who rely on assistance programs like Section 8. The high rent-to-income ratio and the fact that actual rents are far above the FMR indicate that this is a relatively expensive market for renters. With 57.3% of the population renting, there is a strong demand for housing, but the supply of affordable units is limited. This tight market makes it difficult for low-income individuals to find suitable housing without significant financial assistance. #### Investor Angle From an investor perspective, the ZIP code 98661 presents a mixed picture. While the market is tight and occupancy rates are high, the FMR is significantly lower than the actual market rents. For a two-bedroom unit, the FMR is $1800, whereas the actual median rent is around $2977.77. This means that properties rented under Section 8 vouchers would generate less income compared to market-rate rentals. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquisition and maintenance. If an investor purchases a two-bedroom property at the median price of $357,323, the monthly mortgage payment would typically be around $1700-$1800, depending on interest rates and loan terms. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed the FMR of $1800. Therefore, relying solely on Section 8 vouchers would likely result in negative cash flow for most investors. In terms of investment grade, Vancouver, OR (ZIP 98661) is rated as a moderate-risk investment. The high occupancy rates and steady demand for rental properties provide some stability, but the gap between FMR and market rents poses a challenge for those seeking to maximize returns through Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Investors should consider multi-family properties where they can leverage economies of scale. For example, a four-unit apartment complex might have a combined FMR of $11,600 ($2900 per unit), which could be more competitive against the average market rent of $2977.77 per unit. This approach allows for better cash flow management and potentially higher overall returns. 2. **Target Affordable Housing Subsidies**: Given the high price-to-FMR ratio, investors should explore additional subsidies beyond Section 8 vouchers. Programs such as Low-Income Housing Tax Credits (LIHTC) or other local incentives could help bridge the gap between FMR and market rents, making properties more financially viable. 3. **Consider Renovation Projects**: Investors might find value in purchasing older, undervalued properties and renovating them to meet modern standards while still keeping the rent within FMR limits. This strategy could attract voucher holders and other low-income tenants, providing a stable tenant base and potential for long-term appreciation. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 98661 is to **Skip**. The high price-to-FMR ratio and the limited supply of affordable units make it challenging to achieve positive cash flow. Additionally, the tight rental market suggests that competition for tenants will be fierce, further complicating efforts to secure long-term, stable tenancies. Investors looking to enter this market should consider alternative strategies or focus on areas with a more favorable FMR-to-market rent ratio.

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.