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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,160 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,550 | $294,105 | 0.53% | F |
| 3BR | $2,160 | $384,684 | 0.56% | F |
| 4BR | $2,360 | $442,736 | 0.53% | F |
| 5BR | $2,738 | $478,966 | 0.57% | F |
U.S. Census Bureau data (2024)
The thesis for Section 8 real estate in Moxee, WA (ZIP 98936) is anchored by the significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1750 for a two-bedroom unit, whereas the market rent, as per Census ACS, stands at $998. This results in a gap of $752, or approximately 76%, between the FMR and the market rent.
In Moxee, where only 19.1% of residents are renters and the median home value is $394,216, the low market rent suggests that rental properties are undervalued compared to the FMR. The median income in Moxee is $99,280, indicating that many residents can afford higher rents. However, the Section 8 program provides a stable and guaranteed source of income for landlords, making it an attractive yield play.
Voucher tenants under the Section 8 program offer a consistent cash flow, which can be crucial for landlords and small-portfolio investors. The government covers the difference between the market rent and the tenant's portion, ensuring that landlords receive the full FMR of $1750, even though the market rate is lower. This makes the investment in Section 8 properties a reliable way to maximize returns in a market where rents are generally below the FMR.
Investors should be aware that while the FMR is higher than the market rent, it does not necessarily mean higher profits. The cost of maintaining and managing Section 8 properties must be considered. These costs include regular inspections, compliance with HUD standards, and potential delays in rent payments due to administrative processes. Nonetheless, the stability provided by the Section 8 program outweighs these concerns for many investors.
The analysis in Moxee, WA highlights that despite the low percentage of renters and high median home values, the Section 8 program presents a unique opportunity to capitalize on the gap between FMR and market rent, turning it into a solid yield play.
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.