Location: Stevens County, WA | Metro: Stevens County, 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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $293,689 | 0.39% | F |
| 3BR | $1,590 | $385,752 | 0.41% | F |
| 4BR | $1,920 | $403,520 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 99109, Chewelah, WA, reveals some interesting dynamics when comparing the Fair Market Rent (FMR) and the market rent against the median home value. For a two-bedroom property, the annualized FMR is $11,520 ($960 per month), while the market rent stands at $10,428 ($869 per month). Given the median home value of $346,402, we can calculate the implied gross yields for both scenarios.
In the case of using the FMR, the gross yield would be approximately 3.32%. This calculation is derived from dividing the annualized FMR by the median home value: $11,520 / $346,402 = 0.0332 or 3.32%. Conversely, if we use the market rent, the gross yield drops to about 2.99%, calculated as $10,428 / $346,402 = 0.0299 or 2.99%.
The gross yield based on the FMR is higher, indicating a potentially better return on investment. However, the reality of the situation must be considered. With a renter density of only 20.1%, the likelihood of finding tenants who qualify for Section 8 is relatively low. Additionally, the N/A-day DOM (days on market) suggests there is either no available data or that properties are selling quickly, which could imply a strong demand for homeownership over renting.
Given these factors, the gross yield based on market rent might be more realistic. It reflects the actual rental income that can be expected in the area, considering the limited pool of potential Section 8 tenants. While the FMR-based yield is appealing, it does not account for the challenges landlords might face in securing qualified tenants or the overall market conditions that favor homeownership.
Investors should weigh these gross yields carefully, understanding that the FMR scenario represents an upper limit, whereas the market rent scenario offers a more grounded expectation. The choice between these two figures should be informed by a thorough understanding of the local rental market and the availability of Section 8 vouchers in Chewelah, WA.
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.