Location: Kittitas County, WA | Metro: Kittitas County, WA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 98950 presents a challenge due to incomplete data. For a 2-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2026 is $1,400 per month. This annualizes to $16,800. However, the median home value and the market rent for the area are currently unavailable, making it difficult to provide a precise cap rate or gross yield calculation.
To derive an implied gross yield, we would typically compare the annualized rental income to the median home value. With the FMR at $16,800 annually, if we hypothetically assume a median home value of $300,000, the implied gross yield would be approximately 5.6%. This is calculated by dividing the annual rental income ($16,800) by the property value ($300,000).
Without the actual market rent and median home value, it's impossible to provide a second scenario for comparison. However, understanding that Section 8 properties often trade at a discount to market-value homes due to the long-term contract nature and specific tenant requirements, the implied gross yield based on FMR alone may overstate the attractiveness of the investment.
The lack of specific data points such as renter density and days on market (DOM) further complicates the analysis. These metrics would help in assessing the likelihood of maintaining occupancy levels and the speed at which a property could be rented out, critical factors for cash flow stability.
In conclusion, while the hypothetical gross yield based on FMR provides a starting point, investors should seek additional information regarding market rents and property values to make a well-informed decision. The uncertainty around these key figures suggests that caution is warranted until more accurate data can be obtained.
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.