Location: Okanogan County, WA | Metro: Okanogan County, WA
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 | $960 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $275,205 | 0.49% | F |
| 3BR | $1,860 | $339,269 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 98849, Riverside, WA, might have several concerns regarding the viability of renting properties under the Section 8 program. Let's address these concerns directly using available data.
Objection 1: Will FMR $1,220 (metro FY 2026) cover the mortgage on a $257,906 home?
The Fair Market Rent (FMR) for ZIP 98849 in fiscal year 2026 is set at $1,220 per month. To determine if this will sufficiently cover the mortgage on an average-priced home valued at $257,906, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the principal and interest portion alone would be approximately $1,245 per month. This does not include property taxes, insurance, and maintenance costs, which can add significantly to the total monthly expenses. Therefore, the FMR of $1,220 would fall short by around $25 per month, even without factoring in additional costs. For a property to be financially viable under Section 8, it's crucial to ensure that the FMR can cover all associated costs.
Objection 2: Is there enough renter demand at 23.3%?
Riverside, WA, has a rental demand rate of 23.3%. While this percentage indicates a modest level of demand, it's important to note that the actual number of renters depends on the population size. A higher percentage of renters in a smaller population might still result in a limited pool of potential tenants. However, the data does not provide the total number of households or the exact count of renters in ZIP 98849. It's also worth considering that the Section 8 program specifically targets low-income individuals who might otherwise struggle to find affordable housing. Thus, the demand among this demographic could be higher relative to the general rental market.
Objection 3: Will vouchers keep pace with $1,065 market rents?
The market rent for ZIP 98849 is $1,065, while the FMR for Section 8 is $1,220. The question here is whether the voucher amounts will remain competitive with market rents. Historically, FMRs have adjusted annually based on changes in local housing markets. However, the data does not provide projections beyond FY 2026. Given the current FMR exceeds the market rent, it suggests that vouchers are currently sufficient. But investors should monitor future adjustments closely to ensure that voucher values continue to align with market conditions.
In conclusion, while the data provides insights into the financial and demand aspects of renting under Section 8 in ZIP 98849, some questions remain unanswered. Investors must carefully evaluate their costs and consider the broader economic context when deciding to participate in the program.
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.