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 | $1,160 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $358,913 | 0.43% | F |
| 3BR | $2,120 | $409,704 | 0.52% | F |
| 4BR | $2,590 | $438,545 | 0.59% | F |
| 5BR | $3,004 | $478,693 | 0.63% | D |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 99216, located in Spokane Valley, WA, is set at $1290 for fiscal year 2024. In comparison, the Zillow Observed Rent Index (ZORI), which reflects the current market rent, stands at $1475. This indicates that voucher tenants will generally cashflow marginally, requiring landlords to seek units priced closer to the FMR to ensure positive cashflow.
To derive the rent-to-price ratio, we can use the median home value of $404,635. Dividing the market rent ($1475) by the median home value yields a ratio of approximately 0.36%, suggesting that rental income alone would not be sufficient to cover the mortgage on a typical home in this area. Therefore, landlords should focus on properties that offer a better balance between rental income and property costs.
The median days on market (DOM) for the area is listed as N/A, and the percentage of homes that have experienced a price cut is 0.2%. These figures suggest that the housing market is relatively stable, with few homes needing to be discounted to sell. This stability could influence the decision-making process for investors, especially those considering the long-term prospects of their investments.
In summary, while the market rent exceeds the HUD FMR, indicating marginal cashflow potential for voucher tenants, the overall stability and low rate of price cuts make stability the strongest investor angle in ZIP 99216. Landlords and small-portfolio investors can expect consistent returns with minimal risk of property devaluation.
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.