Section 8 Fair Market Rent (FMR) for ZIP 98903 - 2027

Location: Yakima, WA | Metro: Yakima, WA MSA

Investment Score for ZIP 98903

F
Monthly Rent (2BR)
$1,440
Median Price (2BR)
$255,947
1% Rule
0.56%
Annual Yield
6.75%

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$1,090
1 Bedroom$1,100
2 Bedrooms$1,440
3 Bedrooms$1,990
4 Bedrooms$2,250
5 Bedrooms$2,610
6 Bedrooms$2,923
7 Bedrooms$3,157
8 Bedrooms$3,315

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
1BR $1,100 $204,026 0.54% F
2BR $1,440 $255,947 0.56% F
3BR $1,990 $430,225 0.46% F
4BR $2,250 $543,755 0.41% F
5BR $2,610 $625,459 0.42% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
19,445
Median Household Income
$75,343
Housing Units
6,765
Renter Percentage
25.9%
Occupancy Rate
96.4%
Renter Occupied
1,687

The market in ZIP 98903, located in Yakima, WA, reveals a dynamic equilibrium where the balance between supply and demand is tipping slightly towards supply outpacing demand. This inference is drawn from the snapshot of the current rental market conditions. The Fair Market Rent (FMR) set at $1440 for zip FY 2024, which is higher than the actual market rent of $1,266 as reported by the Census American Community Survey (ACS), suggests that landlords might be facing some resistance in achieving the benchmark rents. Additionally, the low price-cut share of 0.3% indicates that few properties are being discounted, but the days on market (DOM) of 60 days signals a moderate level of competition among sellers, implying that it may take longer to sell a property compared to markets with higher demand.

The median home value of $397,123 provides insight into the overall affordability and desirability of homeownership in the area. However, the 25.9% renter share highlights a significant portion of the population that prefers or requires rental housing, which can contribute to long-term housing pressure. This pressure is not solely indicative of demand exceeding supply; it also reflects broader economic factors influencing housing choices. With a substantial renter population, there is ongoing need for rental properties, which can create sustained demand even if it does not currently exceed supply.

In summary, ZIP 98903 presents a market characterized by a slight oversupply of rental units relative to demand, as evidenced by the gap between FMR and actual market rent, along with the DOM figure. The presence of a considerable renter share suggests that while homeownership remains an option, a significant segment of the community relies on rentals, creating a steady demand that landlords should consider when setting rents and managing their portfolios.

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.