Location: Spokane, WA | Metro: Spokane, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 99207 in Spokane, WA, provides a clear snapshot of the investment potential in this area. Using the Fair Market Rent (FMR) for a 2-bedroom apartment at $1290 per month for FY 2024, the annualized rental income comes to $15,480. The Zillow Observed Rent Index (ZORI), at $1,390 per month, translates to an annual rental income of $16,680.
To derive the gross yield, we compare these figures against the median home value of $277,246. For the FMR scenario, the gross yield is calculated as follows:
For the ZORI scenario, the gross yield is:
The 42.4% renter density indicates that there is a substantial portion of the population seeking rental properties, which supports the viability of both scenarios. However, the 43-day Days on Market (DOM) suggests that rental units are being occupied relatively quickly, pointing towards a slightly tighter market where landlords can potentially command closer to the ZORI figure.
Given the data, the ZORI-based gross yield of 6.02% is more likely to be realized in practice. This is because the DOM figure indicates a demand that aligns closely with market rents rather than government-set rates. Therefore, while the FMR provides a baseline for guaranteed income through Section 8 participation, the actual performance of rental properties in ZIP 99207 will likely hover around the higher market rent yield.
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.