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 | $1,140 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,220 | $456,854 | 0.27% | F |
| 2BR | $1,600 | $546,205 | 0.29% | F |
| 3BR | $2,170 | $779,719 | 0.28% | F |
| 4BR | $2,670 | $1,172,743 | 0.23% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP code 98816 (Chelan, WA) for Section 8 properties, follow this decision tree:
Step 1: Can the Fair Market Rent (FMR) of $1,490 cover the debt service on a property valued at $497,293?
No. The FMR does not clear the debt service on a property priced at $497,293. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high property value, the monthly rental income from FMR would likely be insufficient to cover these expenses.
Yes. This scenario is unlikely given the property value and FMR. However, if you find a property significantly below the average value of $497,293, then the FMR might cover the debt service.
Step 2: Is the market rent of $1,278 above, at, or below the FMR?
Above. If the market rent were above $1,490, it would indicate strong demand and potential for higher returns. However, the current market rent of $1,278 is below the FMR, suggesting that while there is some subsidy support, the overall market is weaker.
At. Not applicable in this case, as the market rent is below the FMR.
Below. The market rent is below the FMR, indicating that the local rental market may not fully support the higher subsidized rents. This could mean slower occupancy rates or difficulty in finding tenants willing to pay the higher amount.
Step 3: Are 34.5% of residents renters and is the days-on-market (DOM) sufficient to meet demand?
Yes. With 34.5% of residents being renters, there is a decent level of demand. However, the lack of specific DOM data makes it difficult to assess how quickly properties can be rented out. If the DOM is short, then demand is likely strong enough to support Section 8 investments.
No. If the DOM is long, it suggests weak demand, making it less favorable for Section 8 investments. Long DOM periods indicate difficulties in renting out properties, which could lead to financial losses.
It depends. Without precise DOM data, it's challenging to give a definitive answer. A moderate DOM period might still make the investment viable, especially if other factors such as location and property condition are favorable.
In conclusion, investing in ZIP 98816 for Section 8 properties is feasible only under certain conditions: owning a property well below the average value, having a market rent close to or above the FMR, and ensuring a short DOM period to meet the demand from renters. Otherwise, the investment is not recommended due to the mismatch between market rents and FMR, and the uncertain demand levels.
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.