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 | $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 | $427,282 | 0.32% | F |
| 3BR | $1,860 | $583,145 | 0.32% | F |
| 4BR | $2,270 | $661,573 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for properties in ZIP code 98815, which encompasses Cashmere, WA, is built around the disparity between the Fair Market Rent (FMR) set at $1250 for fiscal year 2024 and the actual market rent reported at $1,116 according to the Census ACS. This gap amounts to $134, or approximately 12%, indicating that the FMR is higher than the prevailing market rent.
This scenario presents a significant opportunity for landlords and small-portfolio investors. The FMR exceeds the market rent, meaning voucher tenants can effectively cover the cost of renting properties at rates above what non-voucher tenants might pay. For instance, a landlord could charge the FMR rate of $1250 and still be competitive in the local rental market where average rents are $1,116.
In Cashmere, WA, only 20.4% of residents are renters, suggesting a relatively low demand for rental properties compared to homeownership. However, the median home value stands at $537,461, and the median income is $88,108. These figures highlight that while homeownership is prevalent, it comes with a high price tag relative to the area's income levels, making subsidized rental housing particularly attractive to many potential tenants.
The higher FMR compared to the market rent means that landlords can achieve a better yield by accepting Section 8 vouchers. They can collect rents that are closer to the FMR without facing the risk of being overpriced in the local market. This strategy not only ensures a steady stream of income but also aligns with the financial realities faced by many in the community.
Moreover, the stable nature of Section 8 payments provides a reliable cash flow, reducing the volatility often associated with traditional rental income. The government-backed payment system minimizes the risk of late or missed payments, thus offering a predictable financial model for landlords.
In summary, the gap between the FMR and market rent in ZIP 98815 makes it a lucrative play for yield-focused investors. By leveraging this difference, landlords can secure higher rental income while providing affordable housing options to those who need them most.
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.