Location: Spokane, WA | Metro: Spokane, WA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 99014 reveals several key points that landlords and small-portfolio investors should consider.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 99014 for fiscal year 2024 is set at $1300 per month. This translates into an annualized rent of $15,600. Given that the median home value in this area is not available, we must rely on other indicators to derive the gross yield.
In the scenario where the market rent is not available, we can still calculate the implied gross yield based on the FMR. Assuming a property value of $250,000, which is a reasonable estimate for the median home value in many areas, the gross yield would be approximately 6.24%. This calculation is derived from dividing the annualized rent ($15,600) by the assumed property value ($250,000).
However, the lack of market rent data and the reported 0.0% renter density suggests that relying solely on FMR for calculating the gross yield might not provide a fully accurate picture. The Days on Market (DOM) being not available further complicates the assessment of rental demand in this area.
Given these constraints, it's important to note that the gross yield derived from the FMR is theoretical and does not account for the actual rental market conditions. In reality, landlords should expect lower yields due to the low density of renters and potential difficulties in leasing properties quickly without a solid understanding of the local market rent.
To conclude, while the implied gross yield based on the FMR is 6.24%, this figure is not reflective of the actual rental environment in ZIP 99014. Landlords and investors must proceed with caution, considering the low renter density and the absence of market rent data before making investment decisions. It is advisable to seek additional information on local rental trends and property values to make a well-informed decision.
Note: The assumed property value of $250,000 is used for illustrative purposes only as the actual median home value for ZIP 99014 was not provided.
Data Sources: FMR data from HUD (2027). 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.