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 | $1,170 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $535,871 | 0.23% | F |
| 2BR | $1,570 | $383,593 | 0.41% | F |
| 3BR | $2,150 | $477,476 | 0.45% | F |
| 4BR | $2,620 | $542,504 | 0.48% | F |
| 5BR | $3,039 | $656,059 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP code 99223 is situated in Spokane, WA, and represents a diverse residential area with a total population of 36,094. Renters make up 33.2% of the residents, indicating a significant portion of the community relies on rental housing. The median household income in this area stands at $94,279, reflecting a middle-class neighborhood with reasonable financial stability. The median home value is $494,368, suggesting a mix of affordable and higher-end housing options.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 99223 in fiscal year 2024 is set at $1,360, while the market rent, as measured by Zillow's Observed Rent Index (ZORI), is $1,610. This means that landlords participating in the Section 8 program can expect a subsidy that covers a portion of the market rent, but they will need to ensure their properties meet the quality standards required by the program to attract tenants.
The discrepancy between the FMR and market rent implies that landlords in this ZIP code may have to manage their properties more actively to maintain profitability. A hands-off voucher operator might struggle to keep up with maintenance costs and property management, given the lower subsidy rates compared to the actual market rents. On the other hand, a hands-on value-add buyer could leverage this opportunity by improving property conditions and efficiency to maximize returns while still benefiting from the Section 8 subsidies.
In conclusion, ZIP 99223 offers a balanced environment for both hands-off and hands-on investors, but the latter may find more success due to the potential for increasing property value and rental income above the FMR. For those willing to invest time and resources into property improvements, this ZIP code presents a viable option within the Section 8 program framework.
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.