Location: Kittitas 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 | $1,270 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,420 | $519,230 | 0.47% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 98828 for Section 8 investment hinges on three key questions.
1) Does the Fair Market Rent (FMR) of $1,520 cover the debt service on a property valued at $524,138?
Yes: The FMR of $1,520 is sufficient to cover debt service if the mortgage terms are favorable. For instance, a 30-year fixed-rate mortgage at 4% interest would result in monthly payments around $2,500, which is higher than the FMR. However, if the mortgage rate is lower or the term longer, the debt service could be closer to or even below the FMR. Thus, it's crucial to secure the best possible financing terms.
No: At a FMR of $1,520, the debt service on a $524,138 property likely exceeds this amount, making it difficult to break even or profit solely from Section 8 tenants. This would suggest avoiding purchases in this area for Section 8 purposes unless other income sources can offset the shortfall.
2) How does the market rent of $1,766 compare to the FMR?
Above FMR: With market rents at $1,766, exceeding the FMR of $1,520, landlords have the option to charge higher rents to non-Section 8 tenants, thereby increasing potential profitability. However, they must consider the likelihood of attracting Section 8 tenants given the higher market rates.
At or Below FMR: If market rents were at or below the FMR, landlords would find it easier to attract Section 8 tenants. However, this is not the case for ZIP 98828 where market rents are higher, indicating a competitive market that might limit the pool of Section 8 tenants.
3) Is there enough rental demand with 11.3% renters and an unspecified Days on Market (DOM)?
It Depends: The percentage of renters at 11.3% suggests a moderate rental market. Without specific DOM data, it's challenging to gauge the speed at which rental units are filled. If DOM is low, indicating quick turnover, there may be sufficient demand. Conversely, high DOM values could signal a slower rental market, reducing the attractiveness of Section 8 investments.
In conclusion, purchasing properties in ZIP 98828 for Section 8 investment requires careful consideration of financing options and market conditions. The FMR needs to be compared against actual debt service costs, while market rents and rental demand must also align favorably. If the answers lead to a positive outcome across these criteria, then the investment is viable. Otherwise, landlords should seek areas with more favorable conditions.
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.