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 | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,220 | $258,934 | 0.47% | F |
| 2BR | $1,590 | $312,295 | 0.51% | F |
| 3BR | $2,200 | $441,944 | 0.5% | F |
| 4BR | $2,480 | $530,218 | 0.47% | F |
| 5BR | $2,877 | $595,197 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 98942, located in Selah, WA, presents an interesting scenario when analyzing the renter's perspective against the backdrop of Section 8 housing vouchers. The median income here is $84,646, which places many households in a position where they must carefully consider their housing costs.
Market rate rents, as measured by Zillow's ZORI (Zestimate Rent Index), stand at $1,674 per month. This figure represents the typical rental cost for properties in the area. However, the Fair Market Rent (FMR) for the fiscal year 2024, which is the benchmark used for determining the amount of housing assistance through Section 8 vouchers, is set at $1,510. This suggests that the voucher payment standard is below the market rate, indicating a potential challenge for renters relying solely on vouchers to secure housing.
The affordability gap becomes even more pronounced when considering that only 25.8% of the 18,871 population are renters. This relatively low percentage of renters implies a competitive landscape for landlords, as there are fewer tenants relative to the total population. Moreover, the disparity between the ZORI ($1,674) and the FMR ($1,510) means that landlords accepting vouchers might find it difficult to cover their expenses fully without additional subsidies or adjustments.
For landlords weighing the decision between accepting Section 8 vouchers versus seeking cash-paying tenants, the key takeaway is that while vouchers provide a steady stream of rental income, the payment rates do not always align with market demands. Landlords should be prepared to manage properties at a lower margin if they choose to accept vouchers. On the other hand, targeting the 74.2% of the population who are not renters could lead to higher rents but also requires navigating a potentially less competitive yet more price-sensitive market.
In summary, the ZIP 98942 offers a mixed landscape for landlords. While the voucher program provides financial stability, the gap between market rents and voucher payments could necessitate strategic planning to ensure profitability. Cash-paying tenants present opportunities for higher rental income but come with their own challenges related to tenant selection and market positioning.
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.