Section 8 Fair Market Rent (FMR) for ZIP 98951 - 2027

Location: Yakima, WA | Metro: Yakima, WA MSA

Investment Score for ZIP 98951

F
Monthly Rent (2BR)
$1,240
Median Price (2BR)
$235,762
1% Rule
0.53%
Annual Yield
6.31%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$940
1 Bedroom$950
2 Bedrooms$1,240
3 Bedrooms$1,720
4 Bedrooms$1,890
5 Bedrooms$2,192
6 Bedrooms$2,455
7 Bedrooms$2,651
8 Bedrooms$2,784

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,240 $235,762 0.53% F
3BR $1,720 $321,533 0.53% F
4BR $1,890 $365,018 0.52% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
12,581
Median Household Income
$63,356
Housing Units
3,737
Renter Percentage
45.5%
Occupancy Rate
94.9%
Renter Occupied
1,613

The economics of Section 8 in ZIP code 98951, which encompasses Wapato, WA, within Yakima County, operate under specific financial guidelines that can impact a landlord's revenue. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1150. This figure represents the maximum amount that the housing authority will pay for rent on behalf of a tenant who receives a Section 8 voucher.

Local market rents, according to Census ACS data, are currently averaging around $899 for a two-bedroom unit. This discrepancy between the SAFMR and the actual market rent is significant and can affect the decision-making process for landlords considering participation in the program.

A voucher payment consists of two parts: the tenant portion and the utility allowance. The tenant is responsible for paying 30% of their income towards rent, while the utility allowance covers additional costs such as electricity, water, and gas. The utility allowance varies but is typically around $250 for a two-bedroom unit in this area. Therefore, if the tenant's portion of the rent is $345 (based on an assumed average income), the total reimbursement from the housing authority would be approximately $1495 ($1150 for rent + $250 for utilities).

This means that landlords in ZIP 98951 could potentially receive more than the current market rent for a two-bedroom unit. However, it's important to note that the SAFMR is set for this specific ZIP code, ensuring that the reimbursement rates reflect the local rental market conditions accurately.

The typical reimbursement gap or surplus for a two-bedroom voucher in this area would be a surplus of about $596 per month ($1495 - $899). This surplus can provide landlords with additional financial stability and predictability, making Section 8 a viable option for managing a portfolio of rental properties in Wapato.

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.