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 | $1,050 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $291,932 | 0.47% | F |
| 3BR | $1,910 | $395,088 | 0.48% | F |
| 4BR | $2,150 | $491,126 | 0.44% | F |
U.S. Census Bureau data (2024)
Zillah, WA (ZIP 98953), located in Yakima County, stands out due to its unique demographic and economic characteristics. With a population of 7,166 residents, Zillah has a rental rate of 20.8%, indicating that just under a fifth of the housing units are rented. The median income in Zillah is $84,766, which is relatively high compared to other rural areas in Washington State. Additionally, the median home value in the area is $382,131, reflecting a stable housing market.
The disparity between the Fair Market Rent (FMR) and the actual market rent in Zillah is significant. For fiscal year 2024, the FMR is set at $1,480, while the Census ACS data indicates a market rent of $1,071. This difference suggests that landlords participating in the Section 8 program can expect higher rental income than the local market average, making it an attractive option for those looking to stabilize their rental income in the area.
Given the data, Zillah's ZIP code appears to be in a stable phase. The high median income supports a robust local economy, and the median home value indicates a consistent housing market. However, the rental market is somewhat smaller, with only about 20.8% of residents renting, which could mean limited demand for rental properties. Landlords should consider the benefits of the Section 8 program in balancing this potential limitation, as it provides a guaranteed tenant base and fixed rental rates that exceed the current market rates.
To summarize, Zillah, WA, offers a stable environment for real estate investment, particularly for those interested in the Section 8 program. The higher FMR compared to the market rent presents an opportunity for landlords to secure steady income, even in a ZIP code where the majority of residents own their homes.
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.