Location: Yakima, WA | Metro: Kennewick-Richland, 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 | $1,010 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $255,956 | 0.54% | F |
| 3BR | $1,870 | $347,888 | 0.54% | F |
| 4BR | $2,150 | $389,991 | 0.55% | F |
| 5BR | $2,494 | $436,100 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 98930, located in Grandview, WA, is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1260, while the Census American Community Survey (ACS) indicates that the market rent stands at $990. This creates a significant gap of $270, or approximately 29%, in favor of the FMR.
This gap suggests that properties participating in the Section 8 program can command higher rents compared to the open market. The rationale behind this is straightforward: voucher tenants provide a stable source of income, which is crucial for landlords and small-portfolio investors looking to maximize their yields. With the FMR being higher than the market rent, landlords who accept vouchers can expect to receive a consistent and often higher rental payment than what they might secure from non-voucher tenants.
In Grandview, where 41.0% of residents are renters, the median home value is $339,500, and the median income is $64,583, the opportunity to lease properties at FMR rates becomes particularly appealing. These figures highlight the economic context of the area, indicating a moderate-income community where the demand for affordable housing is high. The Section 8 program, therefore, serves as a bridge between the financial needs of tenants and the rental expectations of landlords.
However, it's important to note that accepting voucher tenants comes with its own set of considerations. Landlords must adhere to HUD standards and undergo regular inspections, which can be seen as an added administrative burden. Moreover, the process of becoming a Section 8 landlord requires navigating through a series of regulations and requirements that can be complex and time-consuming.
Despite these challenges, the potential to earn above the prevailing market rate makes the Section 8 program an attractive option for yield-focused investments. The $270 difference per month, or about 29% above the market rent, translates into substantial additional revenue over the course of a year, making it a compelling choice for those willing to comply with the necessary guidelines.
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.