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 | $1,170 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,220 | $414,006 | 0.29% | F |
| 2BR | $1,520 | $422,059 | 0.36% | F |
| 3BR | $2,080 | $546,262 | 0.38% | F |
| 4BR | $2,540 | $540,987 | 0.47% | F |
| 5BR | $2,946 | $771,450 | 0.38% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase a property in ZIP 99025 (Newman Lake, WA) for Section 8 investment involves three key questions:
1) Does the Fair Market Rent (FMR) of $1370 cover the debt service on a property valued at $488,970?
If the answer is yes, then the FMR can support the mortgage payments and other financial obligations associated with owning a property of that value. To determine this, calculate the monthly debt service based on typical interest rates and loan terms. For a $488,970 property with a 30-year fixed-rate mortgage at 5%, the principal and interest payment would be approximately $2,590 per month. With an FMR of $1370, the landlord would need additional income sources or lower expenses to meet these debt service requirements.
If the answer is no, then the FMR is insufficient to cover the debt service. The FMR of $1370 does not clear the debt service on a $488,970 property, which stands at about $2,590 per month. This makes the property unsuitable for Section 8 without significant subsidies or adjustments.
2) Is the market rent of $1,338 (Census ACS) above, at, or below the FMR?
The market rent of $1,338 is slightly below the FMR of $1370. This means that landlords may face challenges in finding tenants willing to pay the higher FMR rate required by Section 8, potentially leading to vacancies. If the market rent were above the FMR, it would indicate a strong rental market where Section 8 tenants could easily find housing, making the property a less attractive investment.
3) Are the 6.2% renters combined with the unknown days on market (DOM) indicative of sufficient demand?
The percentage of renters in the area is quite low at 6.2%. This suggests limited demand for rental properties, including those under the Section 8 program. Additionally, the lack of data on days on market (DOM) indicates either a stable market where listings are quickly rented or a market with insufficient data to make a reliable assessment. In either case, the low percentage of renters implies that there may not be enough demand to justify investing in a Section 8 property in this zip code.
Yes/No/It Depends Summary:
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.