Location: Spokane, 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 |
|---|---|---|---|---|
| 3BR | $1,880 | $403,263 | 0.47% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking into ZIP 99012 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns directly using the available data.
The first objection is whether the Fair Market Rent (FMR) of $1,080 for ZIP 99012 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $388,928. To evaluate this, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an interest rate of around 4%, the monthly payment on a $388,928 home would be approximately $1,860. Clearly, the FMR does not cover the mortgage payment alone. However, it's important to note that FMR is just one component of the investment strategy. Landlords can also benefit from appreciation in property values, tax benefits, and other subsidies or incentives that may offset the financial burden.
A second concern is the level of renter demand, which stands at 21.5%. This figure indicates the percentage of households that rent in the area. While 21.5% might seem low, it's crucial to understand the context. The demand for rental properties under the Section 8 program is often stable and less sensitive to economic fluctuations compared to the private market. Additionally, the number of voucher holders in the area is a key indicator of potential demand. If the number of voucher holders is growing, it suggests a strong and increasing demand for affordable housing, which could support the investment in Section 8 properties.
The final objection pertains to the ability of vouchers to keep pace with the market rent, currently set at $1,107. The gap between the FMR ($1,080) and the market rent ($1,107) is a mere $27, indicating that vouchers are closely aligned with actual market conditions. However, this data alone does not guarantee future alignment. It's advisable to monitor local housing trends and policy updates to ensure that vouchers continue to cover a significant portion of the market rent. In some cases, landlords might need to adjust their expectations or seek additional income sources to bridge any gaps.
In conclusion, while the data provides insights into the financial viability of investing in ZIP 99012 through the Section 8 program, it's essential to recognize the limitations and uncertainties. The FMR does not fully cover the mortgage on a median-priced home, but other factors such as property appreciation and tax benefits can play a role. The renter demand, though not exceptionally high, is supported by the stability of the Section 8 program. Lastly, the current alignment of vouchers with market rents is favorable, but vigilance is required to anticipate any future discrepancies.
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.