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 | $1,000 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,380 | $298,673 | 0.46% | F |
| 3BR | $1,880 | $438,032 | 0.43% | F |
| 4BR | $2,260 | $527,727 | 0.43% | F |
| 5BR | $2,622 | $649,158 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 99204, located in Spokane, WA, presents a unique scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1080. In contrast, the market rent, represented by the Zillow Rent Index (ZORI), stands at $1,195. This creates a gap of $115, or approximately 10.6%, between what the government deems as fair market rent and what the market actually demands.
Given that the FMR is lower than the market rent, landlords who accept housing vouchers will be renting their properties at a rate below the open-market price. This means they are essentially subsidizing the difference, which can amount to significant losses over time. For instance, if a landlord rents out a property at $1080 when the market rent is $1,195, they lose $115 per month, or $1,380 annually, on each unit. This financial disparity is critical for investors to consider when evaluating the potential returns of accepting Section 8 tenants.
In the broader context of Spokane, WA, where 69.9% of residents are renters, the median home value is $385,054, and the median income is $58,277, the decision to participate in the Section 8 program becomes even more nuanced. Landlords must weigh the benefits of stable, government-backed rental payments against the potential for reduced rental income compared to market rates. Additionally, the cost of maintaining properties to meet HUD standards, which may be higher than local maintenance norms, should be factored into the overall investment strategy.
To summarize, the gap between the FMR and market rent in ZIP 99204 makes it a less favorable proposition for landlords to accept Section 8 tenants purely from a yield perspective. However, the decision to participate should also consider the broader economic conditions of the area, including high renter concentration and median income levels, which can impact the pool of available tenants and the overall demand for affordable housing.
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.