Section 8 Fair Market Rent (FMR) for ZIP 98940 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

If a landlord is considering buying a property in ZIP code 98940 (Ronald, WA) for Section 8 purposes, they must follow a structured decision-making process based on financial management ratios (FMRs), market rental rates, and demand indicators.

Step 1: Does the FMR of $1,480 cover the debt service on a $564,491 property?

• No. The FMR does not sufficiently cover the debt service on a property valued at $564,491. To determine if the FMR can cover the debt service, you need to calculate the monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly principal and interest payment would be approximately $2,977. This amount is significantly higher than the FMR of $1,480, indicating that the FMR alone cannot support the debt service.

Step 2: Is the market rent above, at, or below the FMR?

• It depends. The provided data states that the market rent is N/A (not available). Without specific market rent figures, it's impossible to accurately compare the market rent to the FMR. However, if the market rent were to be found, it would need to be compared against the FMR to assess whether Section 8 tenants would pay a sufficient portion of the rent to make the investment viable.

Step 3: Are 0.0% renters and N/A days of DOM (days on market) indicative of enough demand?

• No. The fact that there are 0.0% renters indicates a lack of demand for rental properties in this area. Additionally, the N/A days on market suggest that there isn't enough data to determine how long properties typically stay on the market before being rented. This combination of low demand and insufficient data points to a challenging environment for landlords seeking to attract Section 8 tenants.

In conclusion, ZIP code 98940 (Ronald, WA) presents significant challenges for landlords interested in Section 8 properties. The FMR is not high enough to cover the debt service on a $564,491 property, and there is a lack of demand for rental properties in the area. These factors combined make it an unattractive option for Section 8 investments.

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.