Location: Whitman County, 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 | $1,000 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,880 | $341,105 | 0.55% | F |
| 4BR | $2,260 | $350,852 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 99170 might raise several concerns regarding the feasibility of renting out properties under Section 8. Let's address these concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1080 for ZIP 99170 in fiscal year 2024 be sufficient to cover the mortgage on a home priced at $311,506?
The FMR of $1080 is indeed a critical figure for determining if rental income can support the mortgage on a property valued at $311,506. Assuming an average mortgage rate and a typical loan term, the monthly mortgage payment on such a home would likely exceed the FMR. For instance, with a 30-year fixed-rate mortgage at an interest rate of around 5%, the monthly payment could be approximately $1,650. This means that the FMR would not cover the mortgage payment alone, necessitating additional income sources or equity to ensure financial stability.
Objection 2: Is there enough renter demand at 16.1%?
The 16.1% rental rate in ZIP 99170 suggests that there is a moderate level of demand for rental properties. However, this percentage alone does not provide a complete picture of the rental market's health. It is important to consider the total number of households in the area, which is not specified here. If the total number of households is relatively low, even a 16.1% rental rate may indicate a thin market. On the other hand, if the population is substantial, this rental rate could represent a significant pool of potential tenants. To make a definitive assessment, more detailed demographic and economic data specific to the ZIP code would be necessary.
Objection 3: Will vouchers keep pace with market rents of $825?
The question of whether vouchers will keep up with market rents of $825 hinges on the dynamics between government funding and local housing costs. The FMR of $1080 is higher than the current market rent of $825, indicating that voucher holders have some flexibility in finding homes within their budget. However, the long-term sustainability of this balance depends on future adjustments to voucher amounts and changes in market conditions. There is no guarantee that voucher payments will continue to match or exceed the FMR, especially if federal funding remains stagnant while local housing costs rise.
In conclusion, while the data provides insights into the challenges and opportunities of investing in ZIP 99170 through Section 8 properties, it also highlights the need for caution and further research. The FMR does not cover the mortgage on a $311,506 home, the rental demand percentage requires contextual understanding, and the alignment of voucher amounts with market rents is subject to change. Investors should proceed with a thorough analysis of the local market and consider diversifying their investment portfolio.
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.