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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $273,666 | 0.5% | F |
| 3BR | $1,890 | $405,974 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 98938, located in Outlook, WA, presents a dynamic rental market characterized by a robust Federal Market Rent (FMR) of $1500 for the fiscal year 2024. This figure significantly exceeds the current market rent of $790 as reported by the Census ACS, indicating that the rental market in this area is likely under pressure due to limited supply relative to demand. The substantial gap between FMR and market rent suggests that there is a potential for upward movement in rental prices if the supply of rental units does not increase.
The median home value in ZIP 98938 stands at $354,674. While this statistic alone doesn't provide a complete picture of the housing market's trajectory, it does highlight the value of homeownership in the area. Given that 35.0% of the population are renters, this indicates a considerable segment of the market that relies on rental properties. This high percentage of renters can be indicative of long-term housing pressure, as it implies a sustained demand for rental properties which may not be met by an equivalent supply of affordable homes for purchase.
The lack of data on price-cut share and days on market (DOM) for rental properties makes it challenging to assess the exact rate of change in the rental market. However, the disparity between the FMR and the current market rent points towards a scenario where demand for rental housing is strong, potentially leading to a tight rental market. Landlords and small-portfolio investors should consider the current conditions as favorable for maintaining or slightly increasing rental rates, provided they offer well-maintained and competitive properties.
In summary, ZIP 98938 appears to be a market where demand may be outpacing supply, particularly in the rental sector. The high percentage of renters and the significant difference between FMR and actual market rents suggest ongoing pressure on the rental market, making it a potentially lucrative area for those involved in property management and investment.
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.