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 | $1,050 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,010 | $481,953 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 98846 is centered around the significant gap between the Fair Market Rent (FMR) of $1450 and the actual market rent of $971. This gap amounts to $479, which is approximately 49.4% of the market rent. Given that the FMR exceeds the market rent, it indicates that voucher tenants can be a lucrative opportunity for landlords and small-portfolio investors.
The discrepancy arises because the FMR is set by the U.S. Department of Housing and Urban Development (HUD) to reflect the 40th percentile of gross rents for typical, non-substandard rental units occupied by recent movers in a local housing market. In ZIP 98846, where only 16.1% of residents are renters, the median home value stands at $443,918, suggesting a relatively affluent area. The median income is $84,464, which further supports the notion that the market rent might be lower due to the higher proportion of homeowners.
The higher FMR compared to the actual market rent means that landlords can charge the higher FMR rate and still attract tenants who qualify for the Section 8 housing voucher program. This makes the area a yield play, as investors can benefit from the difference between the actual market rent and the subsidized rate provided by the government. However, it's important to note that while the higher rent can improve cash flow, landlords must also consider the administrative burden and potential maintenance costs associated with voucher tenants.
In ZIP 98846, landlords should take advantage of the FMR being above the market rent. This allows them to secure higher rental incomes through the Section 8 program without pricing themselves out of the local market. The analysis is anchored in the context of a ZIP code with a low percentage of renters and a high median home value, indicating a favorable environment for landlords to maximize their returns through Section 8 participation.
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.