Location: Yakima, WA | Metro: Yakima, WA MSA
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 | $1,150 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $292,812 | 0.39% | F |
| 2BR | $1,510 | $328,973 | 0.46% | F |
| 3BR | $2,090 | $422,824 | 0.49% | F |
| 4BR | $2,360 | $539,087 | 0.44% | F |
| 5BR | $2,738 | $609,729 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 98908 is situated in Yakima, WA, and represents a residential area that is both diverse and moderately affluent. With a total population of 38,060, it is clear that this neighborhood is bustling with activity. Renters make up a significant portion of the residents at 31.1%, indicating a mix of homeowners and tenants. The median household income in the area is $84,197, which suggests that the residents have a decent financial standing, allowing them to afford reasonable living expenses.
Furthermore, the median home value in ZIP 98908 is $426,246, reflecting a moderate cost of living. This figure is important for potential investors as it gives an idea of the property values in the area. When it comes to rental economics, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,580, whereas the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,705. This indicates that there is a slight premium for market rents over the government-set FMR, suggesting that landlords can potentially charge a bit more than the voucher limit if they manage their properties effectively.
The disparity between the FMR and the market rent points towards opportunities for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability provided by Section 8 vouchers ensures a steady stream of income without the need for constant tenant turnover. However, the slightly higher market rent could be leveraged by hands-on investors who are willing to improve properties and attract tenants paying above the voucher rate. These improvements might include renovations, upgrades, or even adding amenities that could justify higher rents.
In conclusion, ZIP 98908 offers a balanced environment for Section 8 investments, with a decent income level supporting the viability of the program. The slight difference between the FMR and market rent provides a nuanced landscape where both passive and active investment strategies can find success. For those looking to invest in a stable but also potentially lucrative market, ZIP 98908 presents a viable option.
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.