Location: Grant 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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $238,313 | 0.57% | F |
| 3BR | $1,860 | $332,278 | 0.56% | F |
| 4BR | $2,290 | $404,818 | 0.57% | F |
| 5BR | $2,656 | $510,247 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP 98823, located in Ephrata, WA, within the Grant County, WA metro area, serves as a cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that support stable rental income and low risk. The Fair Market Rent (FMR) for ZIP 98823 in fiscal year 2024 is set at $1270, which is significantly lower than the market rent of $1638. This spread of $368 per unit represents a substantial margin that landlords can rely on to cover operational costs and generate profit.
The median home value in ZIP 98823 stands at $313,744, indicating that the housing stock is relatively affordable. This affordability contributes to the stability of the local rental market, making it less susceptible to rapid changes in rental rates. Moreover, the 0.2% price-cut share and N/A-day Days on Market (DOM) suggest that properties in this area do not often require deep discounts or extended listing periods, further reinforcing the notion of a steady and reliable rental environment.
While the 32.7% renter share and median income of $73,074 might seem like factors that could make ZIP 98823 a diversifier, the primary role here is still that of a cash-flow anchor. The relatively high median income supports the ability of tenants to meet their rental obligations, reducing the risk of default. However, the significant difference between the FMR and market rent makes it clear that the primary benefit lies in the cash flow generated by the lower FMR requirements, allowing landlords to maintain profitability even when operating under Section 8 guidelines.
In conclusion, ZIP 98823 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its financial metrics provide a solid foundation for generating consistent rental income, with a notable margin between the FMR and market rents. Landlords and small-portfolio investors should consider including units in this ZIP code to balance their portfolios and ensure steady returns.
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.