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 | $600,554 | 0.22% | F |
| 3BR | $1,860 | $756,004 | 0.25% | F |
| 4BR | $2,270 | $1,172,516 | 0.19% | F |
U.S. Census Bureau data (2024)
In ZIP code 98843 in Orondo, WA, investing in Section 8 properties comes with several notable risks that landlords must consider before making any decisions. Firstly, tenant turnover poses a significant challenge. The market rent for the area is $836, which is notably lower than the $1500 Fair Market Rent (FMR) for FY 2024. This discrepancy can lead to frequent changes in occupancy, as tenants who qualify for Section 8 vouchers may find it difficult to secure housing at the higher FMR rates. Consequently, landlords might experience higher administrative costs associated with tenant screening and lease renewals.
Vacancy exposure is another critical issue. With no data available on the days on market (DOM), it's challenging to predict how long a property might remain vacant between tenancies. In areas where market rents are significantly below FMRs, finding qualified tenants can be time-consuming, leading to prolonged periods of vacancy. This situation can result in lost rental income and increased expenses for utilities and maintenance during the vacancy period.
The deferred-maintenance exposure is also considerable. Given the typical home value of $677,108 and a median income of $69,425, homeowners in the area may struggle to keep up with necessary repairs and improvements. For landlords, this translates into higher maintenance costs to ensure the property meets the standards required by the Section 8 program. Failure to maintain the property can result in penalties and even termination of the housing assistance contract.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 36.6%. A larger proportion of renters typically indicates a higher demand for housing vouchers. This demand can help stabilize the occupancy rate and reduce the likelihood of extended vacancies. Additionally, the local rental market may benefit from a steady stream of voucher holders, ensuring a consistent pool of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.