Section 8 Fair Market Rent (FMR) for ZIP 98851 - 2027

Location: Grant County, WA | Metro: Grant County, WA

Investment Score for ZIP 98851

F
Monthly Rent (2BR)
$1,110
Median Price (2BR)
$232,691
1% Rule
0.48%
Annual Yield
5.72%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$840
1 Bedroom$850
2 Bedrooms$1,110
3 Bedrooms$1,540
4 Bedrooms$1,870
5 Bedrooms$2,169
6 Bedrooms$2,429
7 Bedrooms$2,623
8 Bedrooms$2,754

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,110 $232,691 0.48% F
3BR $1,540 $350,922 0.44% F
4BR $1,870 $422,516 0.44% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,437
Median Household Income
$63,333
Housing Units
2,003
Renter Percentage
33.5%
Occupancy Rate
80.1%
Renter Occupied
537

ZIP code 98851 is located in Soap Lake, Washington, a small town with a total population of 4,437. Approximately one-third of the residents, 33.5%, are renters, indicating a modest but steady demand for rental properties. The median household income in this area is $63,333, which suggests a middle-class community capable of supporting a range of housing options. The median home value stands at $300,414, reflecting the overall cost of living and property values in the region.

The Fair Market Rent (FMR) for ZIP 98851 is set at $1,060 for the fiscal year 2026, slightly above the current market rent of $1,001 according to the Census American Community Survey. This indicates that there is potential for modest appreciation in rental rates as the FMR adjusts to reflect changes in the local economy and housing market.

Given these economic factors, ZIP 98851 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's relatively low percentage of renters and stable income levels mean that tenants receiving Section 8 vouchers can be expected to fulfill their lease obligations reliably. On the other hand, hands-on investors looking to add value to properties can capitalize on the slight difference between the FMR and the current market rent, potentially increasing their rental income by improving their properties and positioning them to meet the higher FMR threshold.

In summary, Soap Lake's ZIP 98851 offers a balanced environment for real estate investment, particularly for those interested in Section 8 properties. With a manageable renter population and a fair market rent that exceeds the current market rate, it presents opportunities for both passive and active investors.

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.