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 | $880 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $970 | $402,745 | 0.24% | F |
| 2BR | $1,230 | $473,320 | 0.26% | F |
| 3BR | $1,700 | $553,158 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98856, located in Winthrop, WA, within the Okanogan County metro area, reveals several key points for landlords and small-portfolio investors.
First, regarding the rent math, the Family Monthly Rent (FMR) set at $1,060 for fiscal year 2026 contrasts sharply with the current market rent of $846, according to the Census ACS. This indicates that landlords might struggle to achieve the higher FMR due to current market conditions, unless they can offer significant amenities or improvements that justify the premium.
Second, the acquisition cost is centered around a median home value of $458,123. With no available data on Days on Market (DOM) or the percentage of homes that required a price cut, it's challenging to gauge the exact affordability of acquiring properties. However, given the median home value, the purchase of a property would be a substantial investment for most small-portfolio investors.
Third, there is a tenant demand consideration. The population of 2,920 residents includes a 24.6% renter share, which translates to approximately 720 potential renters. This suggests a modest but stable demand for rental properties within the ZIP code.
Verdict: While the potential rental income based on FMR is attractive, the current market rent is significantly lower, indicating a mismatch between government-set standards and actual market conditions. Investors should prepare for lower rents or consider renovations that could command higher rates. Acquisition costs are high, and without further details on DOM and price cuts, caution is advised. Tenant demand is present but limited, suitable for a small portfolio rather than large-scale investment. Overall, the ZIP code offers opportunities for careful, strategic investments.
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.