Location: Kennewick-Richland, WA | Metro: Kennewick-Richland, WA MSA
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 | $1,100 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,240 | $244,638 | 0.51% | F |
| 2BR | $1,500 | $292,733 | 0.51% | F |
| 3BR | $2,070 | $399,324 | 0.52% | F |
| 4BR | $2,360 | $475,350 | 0.5% | F |
| 5BR | $2,738 | $552,270 | 0.5% | F |
U.S. Census Bureau data (2024)
Pasco (ZIP 99301) serves as an agricultural and logistical hub within the Tri-Cities region, characterized by a mix of historic neighborhoods and expanding suburban developments. The local economy is significantly bolstered by the presence of the Port of Pasco, which drives warehousing and distribution jobs, alongside a robust healthcare sector anchored by Kadlec Regional Medical Center nearby. This combination of blue-collar logistics and professional services creates a steady demand for workforce housing.
From a numerical perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is $1,520, while the current market rent (Zillow ZORI) sits higher at $1,820. This results in a gap of $300 per month, meaning standard voucher payments will likely fall below open-market rates. The median home value is $418,126, with a specific median 2BR sale price of $286,332, and properties are moving relatively slowly with a median of 78 days on market.
Despite a solid median household income of $87,951, the renter share is only 28.6%, indicating a predominantly ownership-oriented market. For investors, the demand for voucher units is supported by the area’s family-friendly amenities, including access to highly-rated schools like Chiawana High School and convenient bus transit through Ben Franklin Transit. These factors help maintain tenant retention even when rents are constrained by payment standards.
The Section 8 verdict here leans toward stability over immediate high-yield cash flow. Because the 2BR FMR lags behind market rent by $300, landlords should not expect maximum rental income from vouchers. However, the lower median price point for 2-bedroom homes ($286,332) relative to the general market suggests an entry-level opportunity where consistent, government-backed payments can offset the longer 78-day selling period and provide reliable occupancy.
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.