Location: Stevens County, WA | Metro: Stevens County, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 99129 provides insights into potential rental income scenarios for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, as set for FY 2024, is $1000 per month. This translates to an annualized FMR of $12,000. Meanwhile, the Census ACS reports the market rent for a similar unit at $430 per month, which annualizes to $5,160.
To derive the implied gross yield, we must first calculate the potential rental income based on these figures. For the Section 8 scenario, using the annualized FMR of $12,000, the gross yield would be directly tied to the monthly payment received from the housing authority. However, without the median home value for ZIP 99129, we cannot provide a precise cap rate calculation. A cap rate is typically derived by dividing the net operating income (NOI) by the property's value, but since the median home value is not available, we can only discuss the gross yields.
In the case of market rent at $430 per month, the annualized figure of $5,160 represents the total rental income expected if the property were rented out at market rates. Comparing the two, the Section 8 scenario offers a significantly higher gross yield than renting at market rates. This is due to the guaranteed payment structure of Section 8, which aims to cover a substantial portion of the rent based on the FMR.
Given that 30.8% of households in ZIP 99129 are renters, it is important to consider the demand for rental properties. While the exact days on market (DOM) data is not provided, the high gross yield from Section 8 could be particularly attractive for landlords looking for stable, government-backed income. In contrast, renting at market rates might be less predictable and subject to fluctuations, but it also lacks the administrative overhead associated with the Section 8 program.
Investors should weigh the benefits of guaranteed income versus the potential for higher market rents, considering the specific characteristics of ZIP 99129. The decision ultimately hinges on the investor's risk tolerance and long-term goals.
Data Sources: FMR data from HUD (2027). 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.