Location: Klickitat County, 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 | $1,060 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $223,389 | 0.62% | D |
| 3BR | $1,920 | $304,055 | 0.63% | D |
| 4BR | $2,170 | $345,228 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 98935 (Mabton, WA) reveals a challenging investment scenario for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a 2-bedroom unit at $1390 per month for FY 2024, the annualized rental income would be $16,680. Against the median home value of $276,660, this implies a gross yield of approximately 6.03%. This calculation provides a baseline for understanding the potential income from a property under Section 8.
However, when comparing this to the market rent of $980 per month (as reported by the Census ACS), the annualized rental income drops to $11,760. The gross yield in this case is significantly lower at about 4.25%. This stark difference highlights the financial impact of participating in the Section 8 program versus renting at market rates.
Given the 34.8% renter density in Mabton, it's important to consider the local housing market dynamics. The N/A-day Days on Market (DOM) suggests that either the data is incomplete or there is a steady flow of tenants, which could imply a relatively stable rental market. However, the low market rent compared to the FMR indicates that many local residents might struggle to afford even the subsidized rates, making the lower gross yield more realistic for most properties.
In conclusion, while the Section 8 program offers a guaranteed income stream at a higher rate ($16,680 annually), the reality of the local rental market suggests that achieving this rate might be difficult. Most landlords and small-portfolio investors should expect a gross yield closer to 4.25%, based on the current market conditions and tenant affordability in Mabton, WA. This analysis underscores the importance of thorough due diligence and understanding local market specifics before committing to Section 8 participation.
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.