Section 8 Fair Market Rent (FMR) for ZIP 99362 - 2027

Investment Score for ZIP 99362

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	$1,170
1 Bedroom	$1,240
2 Bedrooms	$1,620
3 Bedrooms	$2,240
4 Bedrooms	$2,710
5 Bedrooms	$3,144
6 Bedrooms	$3,521
7 Bedrooms	$3,803
8 Bedrooms	$3,993

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
1BR	$1,240	$220,037	0.56%	F
2BR	$1,620	$298,674	0.54%	F
3BR	$2,240	$436,172	0.51%	F
4BR	$2,710	$529,578	0.51%	F
5BR	$3,144	$618,143	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 99362 (Walla Walla, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 99362 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1610. This amount represents 26.7% of the median household income of $72,474, which indicates that it is a relatively affordable rent compared to the local income levels. However, the actual market rent for a two-bedroom unit, as indicated by Zillow, is $292,713. The price-to-FMR ratio of 15.2x suggests that the actual market rent is significantly higher than the FMR. This large disparity means that tenants using Section 8 vouchers face significant constraints. They would struggle to find units that accept their vouchers and fall within the FMR limits. Landlords who accept Section 8 vouchers might have limited options to increase rents beyond the FMR, which could impact their profitability if they are already operating at the higher end of the market. #### Affordability & Renter Profile With a population of 42,853, 36.3% of residents are renters, indicating a substantial rental market. The occupancy rate of 92.5% suggests that the housing stock is mostly occupied, implying a tight rental market. Given the high median household income of $72,474, the typical renter in this area likely has a stable financial situation but may still find it challenging to afford the higher market rents. The fact that 2BR units are priced at $292,713 while only $1610 is covered by the Section 8 voucher means that many renters would need to pay a substantial out-of-pocket amount to cover the difference. This makes the market less accessible for low-income households relying on Section 8 assistance. #### Investor Angle From an investor perspective, the ZIP code 99362 presents a mixed picture. The FMR for a 2BR unit is $1610, which is far below the market rent of $292,713. If an investor were to purchase a property at the median price and rent it out at the FMR, the cash flow would be negative due to the high acquisition cost. However, if an investor focuses on properties that can be rented out at the FMR and accepts Section 8 vouchers, the investment could be cash-flow positive. The key challenge here is finding properties that are affordable enough to generate positive cash flow when rented at the FMR. Given the high median home value, this ZIP code may not be ideal for traditional rental investments unless the investor can secure properties at a lower price point. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced below the median value of $292,713. For instance, a 2BR unit priced at around $150,000-$180,000 would be more feasible to rent out at the FMR of $1610 and still achieve positive cash flow. This would require careful selection and possibly targeting older or less desirable properties. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers might be willing to negotiate on rent. Investors could consider offering to manage properties for landlords, ensuring compliance with Section 8 requirements and potentially securing a lower rent payment than the market rate. #### Bottom Line For Section 8-focused investors, the ZIP code 99362 presents a challenging environment due to the high price-to-FMR ratio. The recommendation is to **Skip** this ZIP code for now unless you can find properties at a significantly lower price point than the median. The tight market and high property values make it difficult to achieve positive cash flow when renting at the FMR. Investors looking to enter this market should wait for more favorable conditions or explore other ZIP codes where the price-to-FMR ratio is lower.

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.