Section 8 Fair Market Rent (FMR) for ZIP 99205 - 2027

Investment Score for ZIP 99205

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,130
1 Bedroom	$1,190
2 Bedrooms	$1,510
3 Bedrooms	$2,070
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,190	$241,031	0.49%	F
2BR	$1,510	$287,101	0.53%	F
3BR	$2,070	$336,731	0.61%	D
4BR	$2,520	$365,133	0.69%	D
5BR	$2,923	$398,336	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 99205 (Spokane, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 99205 in 2026 is set at $1560 for a two-bedroom unit. This amount represents 24.2% of the median household income in the area, which is $77,374. However, the actual rental market in this ZIP code is significantly higher. According to Zillow, the median price for a two-bedroom home is $282,558, which translates to a monthly rent of approximately $1512.50 based on a 5% annual rental yield. This means that the actual rental rates for two-bedroom units are likely closer to $1512.50, which is slightly below the FMR but still presents a challenge for voucher holders. The FMR for three-bedroom units is $2130, and four-bedroom units is $2550. Given that the actual rental market is likely to be higher than these figures, Section 8 voucher holders face significant constraints in finding affordable housing options within their budget. #### Affordability & Renter Profile ZIP code 99205 has a population of 43,169, with 27.5% of residents being renters. The occupancy rate is high at 94.9%, indicating a relatively tight market where demand is close to supply. With a median household income of $77,374, the average renter in this ZIP code would find it challenging to afford a two-bedroom unit priced at $1560 per month, especially if they are relying solely on Section 8 vouchers. The price-to-FMR ratio for a two-bedroom unit is 15.1x, suggesting that the market is highly inflated compared to what is considered fair by HUD standards. This makes it difficult for low-income households to find suitable housing without financial strain. #### Investor Angle From an investor’s perspective, the ZIP code 99205 can be analyzed for potential cash flow and investment grade. The FMR for a two-bedroom unit is $1560, while the actual median rental price based on Zillow data is around $1512.50. If we consider that investors might aim to charge slightly above the FMR to ensure profitability, setting the rent at $1560 could provide a modest positive cash flow. However, given the high occupancy rate and the fact that the market is already inflated, there is a risk of overpricing and losing tenants. The investment grade would depend on the ability to secure long-term leases and manage properties efficiently to maintain occupancy levels. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments, which have an FMR of $1220. This is more aligned with the affordability threshold for many low-income households. For example, a one-bedroom unit rented at $1220 would be more attractive to voucher holders and could ensure better occupancy rates. 2. **Consider Location-Specific Strategies**: Since the market is tight, investors should look for properties in less desirable locations within the ZIP code that may command lower rents. This could involve areas with older housing stock or less access to amenities, which might be more affordable for voucher holders. Additionally, renovating these properties to improve their appeal could make them more competitive in the rental market. #### Bottom Line For Section 8-focused investors, the ZIP code 99205 presents a mixed picture. While there is a strong demand for rental housing, the inflated market prices make it challenging to find properties that offer a positive cash flow at the FMR levels. Therefore, the recommendation is to **Hold** investments in this ZIP code, focusing on smaller units and potentially less desirable locations to maximize the chances of attracting voucher holders. Investors should also be prepared to manage properties carefully to maintain occupancy and avoid overpricing, which could lead to tenant loss.

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.