Location: Pend Oreille 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 | $1,000 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $404,466 | 0.34% | F |
| 3BR | $1,880 | $524,397 | 0.36% | F |
| 4BR | $2,260 | $639,616 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 99009, centered around Chattaroy, WA, highlights a significant financial opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1330 for fiscal year 2024, stands notably higher than the actual market rent reported by the Census ACS, which is $1,075. This creates a gap of $255 per month, representing a 23.7% difference between what voucher holders can pay and the prevailing open-market rental rates.
In this scenario where the FMR exceeds the market rent, voucher tenants provide a yield play. Landlords can secure a guaranteed income that is above the typical market rate, ensuring a steady stream of cash flow. With only 13.0% of Chattaroy's residents being renters, the competition for rental properties is relatively low, making it easier to attract voucher holders who can offer a consistent and reliable source of revenue. Furthermore, the median home value in Chattaroy is $487,983, indicating a relatively stable housing market that supports higher rents. However, the median income in the area is $81,809, which suggests that many local residents might find it challenging to afford market rents without assistance, thereby increasing the demand for subsidized housing.
Investors should be aware that while the FMR provides a higher payment threshold, the actual rents collected from voucher tenants may still be lower than what could be achieved in the open market. This discrepancy can impact profitability if the landlord aims to maximize income per unit. Nonetheless, the stability offered by government-backed vouchers can offset risks associated with tenant turnover and delinquency, making this a compelling investment strategy in an area with limited rental demand.
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.