Location: Okanogan County, WA | Metro: Okanogan County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 98859 in fiscal year 2026 will adequately cover the mortgage on a home priced at $200,879. To address this concern, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment for a home priced at $200,879 would be approximately $970, including principal and interest. This figure aligns closely with the FMR, suggesting that rent income could indeed cover the mortgage.
The second objection centers around the renter demand, which stands at 24.3%. While this percentage might seem low, it's important to note that it reflects the proportion of households that rent in the area. The actual number of renters in ZIP 98859 may still support a healthy rental market. However, the data does not provide the total number of households, making it difficult to assess the absolute demand. Nonetheless, a 24.3% rental rate indicates that there is a segment of the population seeking rental properties, which can be a stable source of income.
Lastly, an investor might wonder if Section 8 vouchers will keep pace with the market rents in ZIP 98859. Unfortunately, the data provided does not include specific information on voucher amounts or their adjustment rates. Without this data, it's challenging to definitively state whether vouchers will cover the market rents. However, historically, voucher amounts have been adjusted annually based on the Consumer Price Index (CPI) and local market conditions, which could help maintain alignment with the FMR.
In summary, while the FMR of $970 can cover the mortgage on a $200,879 home, the 24.3% renter demand suggests a modest but potentially stable rental market. The lack of specific voucher data makes it hard to predict their adequacy against market rents, but adjustments based on CPI and local conditions typically ensure some level of alignment.
Data Sources: FMR data from HUD (2027). 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.