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 | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $211,964 | 0.42% | F |
| 2BR | $1,140 | $245,635 | 0.46% | F |
| 3BR | $1,580 | $334,053 | 0.47% | F |
| 4BR | $1,620 | $400,108 | 0.4% | F |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 98855 (Tonasket, WA) for Section 8 investment, the decision can be broken down into three key questions based on the provided data.
1) Does the Fair Market Rent (FMR) of $990 per month clear debt service on a $252,066 property?
Yes: The FMR of $990 per month is sufficient to cover the debt service on a property valued at $252,066. This assumes that the debt service does not exceed the monthly rental income available under the Section 8 program.
No: If the debt service exceeds $990 per month, then the FMR will not cover the costs associated with owning the property, making it an unprofitable investment under Section 8 guidelines.
It Depends: The answer hinges on the specific mortgage terms, interest rates, and other financial obligations tied to the property. Landlords must calculate their total monthly debt service to determine if it aligns with the FMR.
2) Is the market rent of $908 (Census ACS) above, at, or below the FMR?
Above: If the market rent were above $990, it would indicate that the landlord could potentially earn more by renting outside of the Section 8 program. However, since the actual market rent is $908, which is below the FMR, landlords can expect higher rents from Section 8 compared to the local market.
At: Not applicable in this case as the market rent is below the FMR.
Below: Given that the market rent is $908, which is below the FMR of $990, landlords should find the higher guaranteed rent from Section 8 attractive. This discrepancy suggests a potential advantage for landlords participating in the program.
3) Are 24.4% renters plus N/A-day days on the market (DOM) enough demand?
Yes: With 24.4% of the population being renters, there is a notable demand for rental properties. The absence of data regarding days on the market (DOM) does not provide a complete picture but does not necessarily indicate low demand. High occupancy rates and the attractiveness of Section 8 rents can support a positive investment outlook.
No: This option is not directly supported by the given data. A high percentage of renters combined with the potential for higher rents under Section 8 suggests sufficient demand. However, without DOM data, it's challenging to quantify the exact level of competition or vacancy rates.
It Depends: The demand for rental properties in Tonasket, WA, is influenced by the 24.4% of residents who are renters. Without specific DOM data, it's unclear how quickly properties are rented out. Nonetheless, the higher Section 8 rents compared to the market rent suggest that there is likely enough demand to make the investment viable.
In conclusion, for ZIP code 98855, the FMR clears debt service on a property valued at $252,066, assuming the landlord's debt service is within reasonable limits. The market rent is below the FMR, indicating a potential benefit for landlords. The 24.4% rental rate supports demand, though without DOM data, it's difficult to assess the speed of leasing. Overall, the data points towards a favorable investment opportunity for Section 8 landlords.
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.