Location: Stevens County, WA | Metro: Stevens County, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 99181 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 99181 is set at $1310 for fiscal year 2024, while the Census ACS data indicates that the average market rent is only $845. This creates a disparity of $465, or approximately 35%, between what landlords can charge through the Section 8 voucher program and the prevailing market rate.
This gap makes the ZIP 99181 an attractive proposition for landlords and small-portfolio investors looking to maximize their rental yields. By accepting Section 8 vouchers, landlords can command rents significantly higher than those found in the open market. This scenario benefits property owners who can leverage the higher FMR to increase their cash flow, even when the local rental market is relatively low.
However, it's important to anchor this analysis in the broader context of ZIP 99181. Only 8.5% of residents are renters, indicating a predominantly owner-occupied community. The median home value is quite high at $362,151, suggesting that homeownership is accessible to many. Additionally, the median income of $63,661 is above the national average, which might explain why the market rent is lower than the FMR. Landlords should be aware that while the Section 8 program offers higher rents, there may be fewer eligible tenants due to the high median income and limited rental demand.
In conclusion, the discrepancy between the FMR and the actual market rent in ZIP 99181 presents a unique opportunity for landlords to enhance their yields. However, they must also consider the local rental market dynamics and the potential challenges in attracting and retaining voucher tenants in an area where homeownership is more prevalent.
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.