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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $434,766 | 0.33% | F |
| 3BR | $1,960 | $488,177 | 0.4% | F |
| 4BR | $2,290 | $547,290 | 0.42% | F |
| 5BR | $2,656 | $688,730 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 99027, Otis Orchards-East Farms, WA, involve understanding both the SAFMR (Section 8 Area Fair Market Rent) and the local market rent. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1870. This figure represents the maximum amount that the government will pay to landlords participating in the Section 8 Housing Choice Voucher program for a unit of this size.
In contrast, the local market rent for a similar two-bedroom apartment, according to Census ACS data, is $1125. This lower figure reflects the average rental price that tenants might find in the open market without a voucher.
When a landlord accepts a Section 8 voucher, they receive a reimbursement that includes both the tenant's portion of the rent and any utility allowances. The tenant's portion is typically 30% of their adjusted income, which must be affordable to them. Utility allowances vary but are designed to cover the costs of utilities such as electricity, gas, water, and sewage. These allowances are capped and can be found on the HUD website for specific areas.
To illustrate, if a tenant's adjusted income is $2000 per month, they would contribute 30%, or $600, towards the rent. The remaining balance up to the SAFMR of $1870 would be covered by the government. If the total rent plus utilities exceeds $1870, the landlord would have to absorb the additional cost, as the government will not exceed the SAFMR limit.
In ZIP 99027, landlords should expect a reimbursement gap. Given the SAFMR of $1870 and the local market rent of $1125, the government payment is higher than the typical market rate. However, this does not necessarily mean a surplus for landlords, as they are required to charge the tenant the actual market rent. The difference between the market rent and the tenant's contribution is then made up by the government.
For instance, if a landlord charges the market rate of $1125 for a two-bedroom apartment, and the tenant contributes $600, the government would pay the remaining $525 to bring the total to the SAFMR of $1870. In this scenario, the landlord receives the full market rate plus an additional subsidy, effectively closing the gap and providing a surplus of $745 above the typical market rent for a two-bedroom unit.
This analysis shows that while landlords may initially see a discrepancy between the SAFMR and the local market rent, the Section 8 program aims to ensure affordability for tenants while also compensating landlords above the market rate, thus creating a surplus in this particular ZIP code.
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.