Location: Columbia County, WA | Metro: Walla Walla, 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 | $1,060 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $281,735 | 0.53% | F |
| 3BR | $2,040 | $398,173 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 99361 (Waitsburg, WA) might raise several valid concerns regarding the feasibility of such an investment. Let's address these points directly using available data.
Objection 1: Will the Fair Market Rent (FMR) of $1,450 for the fiscal year 2024 cover the mortgage on a home priced at $371,182?
The FMR is a guideline used by the U.S. Department of Housing and Urban Development (HUD) to determine rental assistance payments. However, it does not directly correlate with mortgage payments. To understand if the FMR can cover the mortgage, we need to consider typical interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at a current average rate of 6%, the monthly mortgage payment for a $371,182 home would be approximately $2,200. The FMR of $1,450 falls short of covering this amount. Therefore, an investor would need to factor in other sources of income or have a higher budget for mortgage coverage.
Objection 2: Is there sufficient renter demand at 33.8%?
The 33.8% figure represents the portion of households that are renters in ZIP 99361. While this percentage indicates a moderate level of demand, it is crucial to assess the total number of potential tenants. With a smaller population, the absolute number of renters may be limited. Additionally, the local economy and job market play significant roles in sustaining rental demand. Without specific economic indicators, we cannot definitively state the adequacy of the demand, but the percentage suggests a reasonable market presence for rental properties.
Objection 3: Will vouchers keep pace with market rents of $1,164?
The voucher program aims to provide rental assistance up to the FMR. In ZIP 99361, the market rent of $1,164 is below the FMR of $1,450. This means that voucher holders should theoretically be able to afford units at the market rent. However, the actual distribution and availability of vouchers can vary widely based on local HUD office policies and funding levels. It is important for investors to verify the local administration's approach to voucher distribution and ensure they align with market conditions.
In summary, while the data provides some clarity, it also leaves room for further investigation. Investors must consider additional factors beyond the given statistics to make informed decisions about ZIP 99361.
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.