Location: Yakima, WA | Metro: Tacoma, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,290 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 98937, located in Naches, WA, within the Yakima County County and Yakima, WA MSA metro area, reveals a unique opportunity for investors. The Fair Market Rent (FMR) set by HUD for this zip code for fiscal year 2024 is $1,480, which is higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), standing at $1,358. This means that voucher tenants can cashflow positively at the HUD FMR rate, providing a margin of safety for landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in the area, which is $323,505. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $1,358, the annual rental income would be approximately $16,296. Dividing this by the median home value yields a rent-to-price ratio of about 5%. This ratio suggests that the rental market is relatively strong compared to the housing market, indicating that the area is well-suited for rental investments.
Note that the median days on market (DOM) and the percentage of homes that experienced price cuts are not available, which could affect the rent-versus-buy dynamics. However, given the positive cashflow potential from voucher tenants and the favorable rent-to-price ratio, it is clear that the primary investor angle here is cashflow. This makes ZIP 98937 an attractive option for those seeking steady, reliable rental income.
Data Sources: FMR data from HUD (2027). 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.