Location: Whitman County, WA | Metro: Spokane, WA HUD Metro FMR Area
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 | $1,020 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $339,556 | 0.41% | F |
| 3BR | $1,880 | $410,567 | 0.46% | F |
| 4BR | $2,290 | $467,566 | 0.49% | F |
| 5BR | $2,656 | $518,636 | 0.51% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 99004, located in Cheney, WA, within the Spokane County and Whitman County metro area, reveals several key insights. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1,260, which is notably below the market rent, known as the Zillow Observed Rent Index (ZORI), currently set at $1,471. This difference indicates that voucher tenants would generally cashflow at the FMR rate, but only marginally due to the proximity between the two figures.
To further analyze the investment potential, consider the median home value in the area, which is $420,809. By dividing the ZORI by the median home value, we derive a rent-to-price ratio of approximately 0.35%, suggesting that rental income alone may not be the most compelling factor for investment. However, this ratio can provide stability for long-term investors, given the relatively low risk associated with rental property values.
The market conditions also show a median Days on Market (DOM) of 38 days and a price-cut share of 0.2%. These metrics indicate a strong rental market with quick turnover and minimal need for rent concessions, which can be beneficial for maintaining steady cashflow and minimizing vacancy rates.
Investors should focus on the stability angle when considering Section 8 investments in ZIP 99004, as the combination of a robust rental market and a slight positive cashflow margin provides a solid foundation for long-term real estate strategies.
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.