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 | $1,100 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,020 | $671,389 | 0.3% | F |
| 4BR | $2,470 | $797,218 | 0.31% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 99036 might raise several concerns regarding the feasibility of investing in properties here, particularly under the Section 8 program. Addressing these points with available data provides clarity on the investment landscape.
The first objection is whether the Fair Market Rent (FMR) of $1220 for ZIP 99036 in fiscal year 2024 will adequately cover the mortgage on a property valued at $688,577. To evaluate this, consider the average mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment for a $688,577 home would be approximately $3,340. This figure is significantly higher than the FMR, indicating that the rental income alone would not cover the mortgage costs. Investors would need to ensure they have additional funds or consider refinancing options to manage the gap between rental income and mortgage payments.
The second concern revolves around the level of renter demand, which is currently at 9.0%. This percentage reflects the occupancy rate for Section 8 units, suggesting that there is moderate demand for subsidized housing in the area. However, it's crucial to note that this demand can fluctuate based on local economic conditions, population growth, and changes in government funding for housing assistance programs. The data does not provide insights into future trends, so caution is advised when projecting long-term stability solely based on the current 9.0% demand.
Lastly, there is a question about whether Housing Choice Vouchers will keep pace with the market rents, given that the current FMR is set at $1220. The data does not specify if the voucher amounts will adjust to match increases in market rents. Historically, voucher amounts have been adjusted periodically to reflect inflation and changing market conditions. However, without specific data on upcoming adjustments, investors must monitor local market rent trends and anticipate potential shortfalls if voucher amounts do not increase in line with rising rents.
In summary, while ZIP 99036 presents opportunities for Section 8 investments, the skepticism raised by potential investors is well-founded. The gap between FMR and mortgage payments necessitates careful financial planning, the moderate renter demand requires ongoing monitoring, and the uncertainty regarding voucher adjustments calls for proactive management strategies to ensure sustainable returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.