Section 8 Fair Market Rent (FMR) for ZIP 99208 - 2027

Investment Score for ZIP 99208

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	$1,170
1 Bedroom	$1,230
2 Bedrooms	$1,570
3 Bedrooms	$2,150
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

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	$1,230	$455,011	0.27%	F
2BR	$1,570	$341,908	0.46%	F
3BR	$2,150	$436,899	0.49%	F
4BR	$2,620	$493,076	0.53%	F
5BR	$3,039	$605,989	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 99208 (Spokane, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 99208 in Spokane, WA, for 2026 is set at $1570 for a two-bedroom unit. This amount represents 21.3% of the median household income of $88,599, indicating that it is within a reasonable range for affordability based on local incomes. However, the actual rental market is significantly higher, with Zillow reporting a median price for a two-bedroom unit at $336,533. This translates to a price-to-FMR ratio of 17.9x, which means that the actual rent prices are nearly 18 times higher than what is considered fair market rent by HUD standards. This disparity creates significant constraints for voucher holders. For instance, if a tenant has a Section 8 voucher for a two-bedroom unit, they would only be able to afford units priced at $1570 per month. Given the actual market prices, this leaves very few options for voucher holders, potentially limiting their ability to find suitable housing within the ZIP code. #### Affordability & Renter Profile ZIP code 99208 has a population of 58,669, with 33.2% of residents being renters. The occupancy rate is high at 96.5%, suggesting a tight rental market where demand outstrips supply. With the median household income at $88,599, the majority of residents can afford the high rental prices, but those relying on Section 8 vouchers face a challenging situation. Given that 21.3% of the median income is allocated towards the FMR for a two-bedroom unit, it indicates that individuals who rely solely on Section 8 vouchers would need to have additional income sources to cover the gap between the voucher amount and the actual rent. This makes the market particularly tight for low-income renters who depend entirely on government assistance. #### Investor Angle From an investor perspective, the ZIP code 99208 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1570, which is significantly lower than the actual market rent. However, the high occupancy rate suggests that there is strong demand for rental properties, even at premium prices. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. Assuming a conservative estimate of 50% of the FMR going towards operating costs (including mortgage payments, property taxes, insurance, maintenance, and management fees), the net income would be around $785 per month for a two-bedroom unit. This is a modest figure compared to the actual market rent, but it still provides some positive cash flow. The investment grade for this ZIP code is likely to be moderate to high due to the strong demand and relatively stable occupancy rates. However, the reliance on Section 8 vouchers could introduce some risk factors, such as potential delays in voucher processing and the need for regular compliance checks. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties that are priced below the FMR to ensure they can attract tenants using Section 8 vouchers. For example, a two-bedroom unit priced at $1500 or less would be more attractive to voucher holders and could provide a better chance of maintaining occupancy. 2. **Consider Multi-Bedroom Units**: Given the higher FMR for larger units, investors might want to focus on three-bedroom or four-bedroom units. These units have FMRs of $2140 and $2570 respectively, which are closer to the actual market prices. This could help mitigate the risk of vacancy and ensure a steady stream of rental income. 3. **Explore Mixed-Income Developments**: Developing mixed-income housing projects could be a viable strategy. By offering a mix of units that cater to both voucher holders and market-rate tenants, investors can balance the risks and rewards of the rental market. For instance, a development that includes a mix of one-bedroom units priced at $1200 and three-bedroom units priced at $2200 could appeal to a broader range of renters. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 99208 is to **Hold**. While the high price-to-FMR ratio poses challenges for voucher holders, the strong demand and high occupancy rates indicate a robust rental market. Investors should carefully evaluate the pricing of their properties and consider developing mixed-income housing to balance the needs of voucher holders with the realities of the local rental market. However, given the significant gap between FMR and actual market rents, it is crucial for investors to ensure that their properties are priced competitively for voucher holders while still generating sufficient cash flow. This requires a nuanced approach to property acquisition and management, focusing on units that are priced just below the FMR threshold to maximize occupancy and minimize vacancy risks.

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.