Location: Garfield County, WA | Metro: Walla Walla, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $970 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 99328 might raise several valid concerns regarding the financial viability of renting properties in this area. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1450 cover the mortgage on a $265,955 home?
The FMR of $1450 is a crucial figure for landlords in ZIP 99328. To determine if it can cover the mortgage, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a $265,955 home would be approximately $1270. This calculation does not include property taxes, insurance, and maintenance costs. However, the FMR of $1450 exceeds the mortgage payment, indicating that it can indeed cover the mortgage on such a home, even with additional expenses.
Objection 2: Is there enough renter demand at 22.6%?
The rental demand in ZIP 99328 stands at 22.6%. While this percentage might seem low at first glance, it is important to note that this reflects the proportion of households that rent. In many markets, a rental rate of 22.6% can still indicate a steady demand, especially when compared to areas with lower percentages. However, the data does not provide the total number of households or the exact number of renters, which would give a clearer picture of the demand. It is also worth considering that rental rates can fluctuate based on local economic conditions, job availability, and population trends. For now, the 22.6% suggests a reasonable level of interest from potential tenants.
Objection 3: Will vouchers keep pace with $982 market rents?
The current market rent in ZIP 99328 is $982, while the FMR is $1450. The gap between the two figures raises questions about whether voucher recipients can afford market rates. The Housing Choice Voucher Program, commonly known as Section 8, aims to cover a significant portion of rent but not necessarily the entire amount. Landlords should expect that vouchers will cover a substantial part of the $982 rent, though they may need to negotiate with tenants to make up any shortfall. The data does not specify the exact amount covered by vouchers, but historically, vouchers have been adjusted annually based on the HUD’s FMR. Therefore, landlords can reasonably anticipate that vouchers will keep pace with market rents, although there may be periods of adjustment where the voucher amount lags behind market increases.
In summary, the data for ZIP 99328 indicates that the FMR is sufficient to cover the mortgage on a $265,955 home, there is a modest level of rental demand, and vouchers are likely to keep pace with market rents, albeit with some fluctuations. Investors should conduct further research into local economic indicators and housing trends to make a fully informed decision.
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.