Section 8 Fair Market Rent (FMR) for ZIP 99336 - 2027

Investment Score for ZIP 99336

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	$1,060
1 Bedroom	$1,190
2 Bedrooms	$1,440
3 Bedrooms	$1,990
4 Bedrooms	$2,270
5 Bedrooms	$2,633
6 Bedrooms	$2,949
7 Bedrooms	$3,185
8 Bedrooms	$3,344

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
2BR	$1,440	$279,999	0.51%	F
3BR	$1,990	$357,445	0.56%	F
4BR	$2,270	$435,465	0.52%	F
5BR	$2,633	$525,865	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 99336 (Kennewick, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 99336 in Kennewick, WA, is set by HUD for 2026 as follows: - 0BR: $1090 - 1BR: $1240 - 2BR: $1500 (which is 28.8% of the median household income) - 3BR: $2020 - 4BR: $2330 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to understand how these FMRs compare to actual rental rates in the area. According to Zillow, the median price for a 2BR property in this ZIP code is $275,793. This translates into a monthly mortgage payment of approximately $1,150 assuming a 30-year fixed-rate mortgage at 4.5%. When considering additional costs such as property taxes, insurance, and maintenance, the total monthly cost for a landlord would likely exceed the FMR. Given that the Price-to-FMR ratio for a 2BR unit is 15.3x, it is clear that the actual rental market significantly exceeds the FMR. For instance, if a 2BR unit were rented at the Zillow median price, the monthly rent would be around $1,500, which is already higher than the FMR of $1500. This means that voucher holders face significant constraints in finding suitable housing within their budget. They might have to settle for smaller units or properties that are older and less desirable. #### Affordability & Renter Profile ZIP code 99336 has a population of 50,735, with 51.7% of residents being renters. The occupancy rate is 92.3%, indicating a relatively tight rental market. With a median household income of $62,527, the affordability of housing is a critical issue for many residents. The fact that 2BR units are priced at 28.8% of the median income suggests that the majority of renters are likely to be low-income families who rely heavily on assistance programs like Section 8 vouchers. Given the high percentage of renters and the tight occupancy rate, the demand for affordable housing is strong. However, the mismatch between the FMR and actual rental prices indicates that there is a significant gap in the supply of affordable units. This tight market could lead to increased competition among renters, making it challenging for those with limited financial resources to secure housing. #### Investor Angle From an investor perspective, the ZIP code 99336 presents a mixed picture when considering cash flow at FMR levels. Given the high actual rental prices compared to the FMR, landlords who are willing to accept Section 8 vouchers will likely face lower cash flows. For example, a 2BR unit with a Zillow median price of $275,793 would have a mortgage payment of about $1,150, plus additional expenses such as property taxes ($200 per month), insurance ($100 per month), and maintenance ($50 per month). This brings the total monthly cost to around $1,500, which is already above the FMR of $1500. Moreover, the high Price-to-FMR ratio of 15.3x suggests that the market is overpriced relative to the FMR. This means that even if a landlord accepts a Section 8 voucher, they may still struggle to cover all their expenses without additional subsidies or rent increases. Therefore, the investment grade for this ZIP code from a Section 8-focused standpoint is moderate to low due to the potential for negative cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units are more likely to be within the FMR limits and thus more attractive to voucher holders. For instance, a 0BR unit with a Zillow median price of $180,000 would have a mortgage payment of around $750, leaving room for other expenses and a positive cash flow. 2. **Consider Renovations**: Investors might want to consider purchasing older properties that are currently below the FMR but require renovations. By investing in improvements, they can increase the value and attractiveness of the property while still keeping it within the FMR range. For example, a 2BR unit priced at $200,000 (around $833 in monthly mortgage payments) could be renovated to improve its condition and appeal to renters, potentially increasing the rental income without exceeding the FMR. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 99336 is to **Hold**. While the demand for affordable housing is strong, the high actual rental prices and the tight market conditions make it difficult to achieve positive cash flow solely through Section 8 vouchers. Investors should carefully evaluate the potential for positive cash flow and consider strategies such as focusing on smaller units or renovating existing properties to maximize returns while staying within the FMR limits.

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.