Location: Wenatchee-East Wenatchee, WA | Metro: Wenatchee-East Wenatchee, 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 | $1,110 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $390,682 | 0.3% | F |
| 2BR | $1,550 | $412,447 | 0.38% | F |
| 3BR | $2,100 | $513,800 | 0.41% | F |
| 4BR | $2,590 | $637,554 | 0.41% | F |
| 5BR | $3,004 | $738,308 | 0.41% | F |
U.S. Census Bureau data (2024)
In analyzing the real estate investment potential of ZIP code 98802, which encompasses East Wenatchee, WA, several key concerns arise regarding the feasibility of renting properties through the Section 8 program. The first objection pertains to whether the Fair Market Rent (FMR) of $1,490 for the fiscal year 2024 will sufficiently cover the mortgage payments on a median-priced home valued at $509,729. To put this into perspective, a typical mortgage payment for a home of that price range, assuming a 20-year fixed-rate mortgage at an average interest rate, would be approximately $3,500 per month. Clearly, the FMR does not cover the mortgage, indicating that landlords relying solely on Section 8 rental income will need additional sources of revenue or have a significant financial cushion to sustain the investment.
The second concern revolves around the level of renter demand in the area, which stands at 30.3%. This percentage reflects the proportion of renters in the population, but it does not directly indicate the number of qualified Section 8 tenants seeking housing. However, given that the overall rental demand is relatively modest compared to areas with higher percentages, landlords might face competition from other investors looking to capitalize on the same pool of tenants. It's important to note that while the percentage is lower, it still represents a substantial portion of the market, suggesting that there is room for Section 8 rentals, albeit potentially more competitive.
A third critical point of contention is the ability of voucher amounts to keep pace with market rents, which currently sit at $2,279. The gap between the FMR and market rents highlights a challenge for landlords who may prefer to attract non-voucher tenants. However, the Section 8 program has historically adjusted its voucher amounts to reflect changes in the cost of living and housing prices. While the data does not provide specific projections for future adjustments, it is reasonable to assume that the Department of Housing and Urban Development (HUD) will continue to monitor and update the voucher amounts to ensure they remain viable for both landlords and tenants. Nonetheless, this does not guarantee that the voucher amount will always match or exceed market rents, leaving some uncertainty for landlords.
To conclude, while ZIP 98802 presents some challenges for Section 8 landlords, such as the disparity between FMR and mortgage costs, and the modest percentage of renters, it also offers opportunities. The demand for affordable housing remains, and HUD's commitment to adjusting voucher amounts provides a measure of stability. Landlords must carefully weigh these factors and consider diversifying their tenant base or securing properties at lower price points to ensure profitability.
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.