Location: Kittitas County, WA | Metro: Kittitas 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 | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $398,235 | 0.29% | F |
| 2BR | $1,530 | $539,702 | 0.28% | F |
| 3BR | $2,120 | $793,847 | 0.27% | F |
| 4BR | $2,560 | $1,321,999 | 0.19% | F |
| 5BR | $2,970 | $1,943,537 | 0.15% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 98922 in Cle Elum, WA, must be carefully considered. Tenant turnover is likely to be an issue, given that the market rent stands at $1,302 while the Fair Market Rent (FMR) for FY 2026 in the metro area is $1,310. This narrow margin suggests that tenants might be drawn to higher rents outside the program, leading to frequent changes in occupancy.
Vacancy exposure is another concern. The Days on Market (DOM) figure is not available, which means it's unclear how long properties typically remain vacant before attracting a tenant. This uncertainty can lead to significant financial strain during periods when the property isn't generating rental income.
Deferred maintenance poses a threat due to the typical home value of $613,688 and a median income of $73,603. Landlords will need to ensure that homes meet the necessary standards for Section 8 without relying heavily on the limited income of the residents to cover maintenance costs. The gap between home values and median incomes indicates that maintaining properties might require substantial out-of-pocket expenses.
Despite these challenges, the high renter share of 13.7% suggests a robust demand for rental housing, including those supported by vouchers. This high density of renters often translates into a larger pool of Section 8 participants, making it easier to fill vacancies and sustain a steady income stream.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.