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 | $1,270 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $309,385 | 0.56% | F |
| 3BR | $2,370 | $447,037 | 0.53% | F |
| 4BR | $2,710 | $574,014 | 0.47% | F |
| 5BR | $3,144 | $671,731 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 99352 in Richland, WA, are significant. Tenant turnover is a critical issue, with the market rent at $1,788 compared to the Fair Market Rent (FMR) of $1,700 for FY 2024. This discrepancy can lead to frequent changes in tenants, which is costly and time-consuming. Landlords should prepare for higher administrative expenses associated with screening and onboarding new tenants.
Vacancy exposure is another concern. With an average Days on Market (DOM) of 40 days, it indicates that properties may remain unoccupied for a considerable period before finding a tenant. This downtime represents a financial loss, as landlords will not receive rental income during these periods.
Deferred maintenance is also a risk factor. Given the typical home value of $500,563 and a median household income of $100,108, there may be limitations on how much tenants can contribute to the upkeep of the property. Landlords must budget for regular maintenance and potential renovations, ensuring that the property remains in good condition to comply with housing standards.
However, these risks are tempered by the high renter share in the area, which stands at 32.2%. A larger proportion of renters generally translates into higher demand for housing vouchers, making it easier to find tenants willing to use Section 8 vouchers. This robust rental market can help mitigate some of the challenges posed by tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 99352 in Richland, WA, is moderate.
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.