Section 8 Fair Market Rent (FMR) for ZIP 98801 - 2027

Investment Score for ZIP 98801

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	$1,050
1 Bedroom	$1,120
2 Bedrooms	$1,470
3 Bedrooms	$1,990
4 Bedrooms	$2,460
5 Bedrooms	$2,854
6 Bedrooms	$3,196
7 Bedrooms	$3,452
8 Bedrooms	$3,625

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	$1,120	$268,681	0.42%	F
2BR	$1,470	$368,819	0.4%	F
3BR	$1,990	$513,172	0.39%	F
4BR	$2,460	$619,013	0.4%	F
5BR	$2,854	$692,554	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98801 (Wenatchee, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Wenatchee, WA (ZIP 98801) in 2026 is set at $1040 for zero-bedroom units, $1150 for one-bedroom units, $1510 for two-bedroom units, $2080 for three-bedroom units, and $2530 for four-bedroom units. These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that the actual rents in the area can be significantly higher, especially for larger units. For instance, the Zillow median price for a two-bedroom unit in Wenatchee is $362,344. Given the high price-to-FMR ratio of 20.0x, it is evident that actual rents far exceed the FMR. This means that voucher holders face significant constraints when trying to find suitable housing. The disparity between the FMR and actual rents could lead to a situation where voucher holders are forced to look for properties outside the ZIP code or settle for lower-quality housing within their budget. #### Affordability & Renter Profile With a population of 45,426, Wenatchee has a relatively large number of renters, accounting for 41.2% of the total households. The occupancy rate stands at 96.3%, indicating a tight rental market with limited availability. The median household income in Wenatchee is $81,488, which places a significant portion of the population in a position where they might struggle to afford market-rate rents. Specifically, the FMR for a two-bedroom unit ($1510) represents only 22.2% of the median income, suggesting that many residents can afford to pay more than the FMR. However, the high price-to-FMR ratio indicates that there is a substantial gap between what voucher holders can afford and the actual rents charged. This tight market condition implies that there is a strong demand for rental properties, but the supply is constrained by the high cost of living and limited affordable options. #### Investor Angle From an investor perspective, the ZIP code 98801 presents both opportunities and challenges. The high price-to-FMR ratio suggests that the market is overpriced relative to the FMR, which could make it difficult for investors to achieve positive cash flow if they rely solely on FMR-based rents. For example, a two-bedroom unit priced at $362,344 would likely command a monthly rent well above the FMR of $1510. However, given the high demand for rental properties and the tight market conditions, investors who can offer competitive rents while maintaining affordability might still find success. The key is to balance the need for a reasonable return on investment with the ability to attract tenants who are either voucher holders or those who can afford slightly above FMR rents. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring and renovating smaller units (zero-bedroom and one-bedroom) that are closer to the FMR. For example, a one-bedroom unit at $1150 per month is more likely to be occupied by voucher holders compared to a two-bedroom unit at $1510, which is already a stretch for many voucher holders. 2. **Offer Incentives for Voucher Tenants**: To attract voucher holders, landlords could consider offering incentives such as reduced application fees or first-month rent discounts. This can help offset the administrative burden associated with managing Section 8 vouchers. 3. **Develop Mixed-Income Housing**: Creating mixed-income developments can help bridge the gap between market-rate and FMR rents. By including a mix of units that cater to different income levels, investors can ensure a steady stream of tenants while also contributing to the community's affordability. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Hold**. While there are opportunities to invest in smaller units that are closer to the FMR, the overall market dynamics suggest that achieving positive cash flow purely based on FMR rents will be challenging. Investors should carefully evaluate the potential returns and consider diversifying their portfolio to include a mix of affordable and market-rate units. In summary, the ZIP code 98801 (Wenatchee, WA) is characterized by a high demand for rental properties and a significant gap between actual rents and the FMR. This makes it a challenging environment for Section 8-focused investors, but there are strategic approaches that can still yield positive outcomes.

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.