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 | $1,630 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,180 | $396,584 | 0.55% | F |
| 3BR | $2,990 | $472,598 | 0.63% | D |
| 4BR | $3,640 | $583,001 | 0.62% | D |
| 5BR | $4,222 | $734,276 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 99016, located in the Spokane Valley, WA area, is best suited as an appreciation play within a Section 8 portfolio strategy. This classification is based on several key factors derived from the latest HUD Metro FMR Area data for FY 2024.
Firstly, the spread between the Fair Market Rent (FMR) of $1,600 and the market rent of $1,666 is minimal, indicating that the rental market is stable and closely aligned with government standards. This stability reduces the risk associated with significant fluctuations in rental income, making it a reliable component of a diversified investment portfolio.
Secondly, the median home value in ZIP 99016 stands at $495,484, which is relatively high compared to other areas within the Spokane, WA HUD Metro FMR Area. However, the low price-cut share of 0.3% suggests that homes in this area maintain their value well, rarely needing to be discounted to sell. Additionally, the days on market (DOM) average of 42 days indicates a brisk pace of sales, further supporting the notion that properties here hold their value effectively over time.
Lastly, while the renter share of 22.4% and the median income of $103,472 might suggest some diversification benefits, these factors are overshadowed by the strong potential for property appreciation. The combination of high median home values and a robust real estate market means that landlords and small-portfolio investors can expect their properties to appreciate in value, providing a solid long-term investment opportunity.
In conclusion, ZIP 99016 is most effectively positioned as an appreciation play in a Section 8 portfolio strategy. Its stable rental market, high median home values, low price-cut share, and quick sales cycle all contribute to making it a valuable asset for investors looking to build wealth over time through property appreciation.
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.