Location: Lincoln 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 | $376,613 | 0.37% | F |
| 3BR | $1,880 | $426,492 | 0.44% | F |
| 4BR | $2,260 | $481,645 | 0.47% | F |
| 5BR | $2,622 | $515,734 | 0.51% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP 99022, located in Medical Lake, WA, for investment opportunities, several key concerns arise regarding the financial viability of properties under Section 8 housing programs. The first objection is whether the Fair Market Rent (FMR) of $1,090 per month for ZIP 99022 in fiscal year 2024 will be sufficient to cover the mortgage on a typical home valued at $430,348. This is a valid concern, given that the FMR is significantly lower than what might be expected for such a property value. However, it's important to consider the broader context of the local real estate market and the typical monthly mortgage payments for homes in this price range. A $430,348 home with a 20% down payment and a 30-year fixed-rate mortgage at an average interest rate would likely have a monthly payment below $1,090, making it feasible for Section 8 landlords to break even or make a profit.
The second objection pertains to the level of renter demand, which stands at 21.1%. While this percentage might seem low to some investors, it's crucial to understand that demand isn't solely measured by the proportion of renters but also by the overall population size and the number of units available. To address this, a deeper dive into the local rental market trends and vacancy rates would provide clearer insight into the actual demand and competition faced by landlords. Unfortunately, the data provided does not include these specifics, leaving this question partially unanswered.
The final objection is whether the Section 8 voucher program will keep pace with the market rents, which currently stand at $1,741 per month. The gap between the FMR and the market rents suggests that landlords relying solely on Section 8 vouchers could face challenges in covering their costs. However, the voucher program aims to adjust its payments based on local housing conditions, and while it may not always match the exact market rents, it typically provides a reasonable subsidy that can be supplemented by additional income streams or cost-saving measures. It's also worth noting that the stability and security provided by Section 8 tenants often outweigh the initial financial discrepancy.
To summarize, while the FMR of $1,090 in ZIP 99022 is lower than the market rents of $1,741, it can still support a mortgage on a $430,348 home, especially when considering typical down payment sizes and interest rates. The renter demand at 21.1% raises questions about the competition in the rental market, but without additional data on population size and unit availability, a definitive conclusion cannot be drawn. Lastly, the Section 8 voucher program, though not matching the market rents exactly, offers a stable tenant base and adjusts its payments to reflect local housing conditions, making it a viable option for landlords and small-portfolio investors.
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.