Location: Okanogan County, 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 | $940 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $267,491 | 0.5% | F |
| 3BR | $1,860 | $344,875 | 0.54% | F |
| 4BR | $2,270 | $475,099 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP 98812, located in Brewster, WA, within the Okanogan County, WA metro area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code is best categorized as a cash-flow anchor. The Federal Market Rent (FMR) for ZIP 98812 in fiscal year 2024 is set at $1210, which is significantly higher than the current market rent of $878. This spread indicates that properties within this ZIP code can be rented out through the Section 8 program at rates above the typical market levels, ensuring a stable and reliable cash flow.
The median home value in ZIP 98812 stands at $316,971. Given the disparity between the FMR and the market rent, landlords and small-portfolio investors can expect to receive a higher rental income than what they would typically get in the open market. This makes ZIP 98812 an ideal location for securing consistent cash flow, especially when considering the long-term stability that the Section 8 program offers.
ZIP 98812 has a 45.0% renter share, indicating a moderate level of renters in the area. While this does not suggest a high potential for appreciation plays due to limited data on price-cut shares and days on market (DOM), it does provide a reasonable diversification benefit. The median income of $59,297 supports the idea that there is a steady demand for affordable housing options, making the Section 8 program a viable and attractive choice for many residents.
In conclusion, ZIP 98812 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The significant spread between the FMR and market rent ensures that investors will receive a higher income than the typical market rate, providing a solid financial foundation for their investment portfolios. Additionally, the presence of a moderate renter share and median income levels suggests a stable and sustainable demand for Section 8 housing units.
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.