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 | $1,150 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $350,833 | 0.36% | F |
| 2BR | $1,650 | $356,700 | 0.46% | F |
| 3BR | $2,280 | $477,345 | 0.48% | F |
| 4BR | $2,760 | $539,501 | 0.51% | F |
| 5BR | $3,202 | $565,316 | 0.57% | F |
U.S. Census Bureau data (2024)
47.5% of residents in Ellensburg, WA, live as renters, making it a viable market for rental properties. The $1,450 Fair Market Rent (FMR) for the metro area in fiscal year 2026 indicates a solid base for rental income, aligning closely with the $1,545 Zillow Observed Rental Index (ZORI), which reflects the actual market rent. This suggests that the rental market is well-regulated and fair, offering landlords a predictable revenue stream.
The median home value stands at $458,940, providing a benchmark for property investment. However, the median income of $71,137 reveals a gap between housing costs and earning power, potentially driving more residents towards rentals. The 49-day Days on Market (DOM) average signals a healthy demand for rental units, as properties are quickly leased out. With only a 0.2% price-cut share, landlords can maintain their rental rates without significant adjustments.
Investors should note that while the FMR and market rent are nearly identical, the median home value far exceeds the median income, creating a challenging environment for potential homeowners. This imbalance favors the rental market, particularly for Section 8 housing. Given the high renter share and the relatively low DOM, the area is conducive to Section 8 investments. The close alignment of FMR and ZORI also ensures that landlords can receive government-subsidized rents that are reflective of local market conditions.
Verdict: Ellensburg, WA, is a strong market for Section 8 investments, with favorable rental dynamics and a high demand for affordable housing.
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.