Location: Wenatchee-East Wenatchee, WA | Metro: Wenatchee-East Wenatchee, WA MSA
| 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 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 98830 might have several concerns regarding the feasibility of investing in a property there under the Section 8 program. Here are three common objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $1170 for the fiscal year 2024 cover the mortgage on a home priced at $260,534?
The FMR of $1170 for ZIP 98830 in fiscal year 2024 must be considered alongside typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $260,534 home would be approximately $1260. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of about $90 per month. However, it's important to note that this calculation assumes no down payment and a standard interest rate. In reality, investors could mitigate this shortfall through a higher down payment or by securing a lower interest rate, which would reduce the monthly mortgage payment.
Objection 2: Is there enough renter demand at 24.2%?
The 24.2% figure represents the portion of households in ZIP 98830 that are renters. While this percentage is relatively low compared to some urban areas, it still indicates a significant number of potential tenants. For example, if there are 10,000 households in ZIP 98830, 24.2% translates to about 2,420 rental households. The demand for rental properties can be influenced by various factors such as job availability, population growth, and housing costs. Although the data does not provide a comprehensive picture of these dynamics, the existence of a dedicated tenant pool is a positive sign for investment stability.
Objection 3: Will vouchers keep pace with market rents of $575?
The current market rent of $575 in ZIP 98830 is below the FMR of $1170, suggesting that voucher amounts could potentially exceed market rents. However, whether vouchers will keep pace with future increases in market rents is uncertain without additional data on historical trends and projected changes in both voucher values and local rental prices. It's advisable for investors to monitor these trends closely to ensure that their rental income remains consistent with their financial plans.
Data Sources: FMR data from HUD (2027). 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.