Location: Adams County, WA | Metro: Kennewick-Richland, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
U.S. Census Bureau data (2024)
The median Fair Market Rent (FMR) for ZIP 99371 in fiscal year 2024 is set at $1410. This figure addresses several concerns an investor might have.
A skeptical landlord might ask if this amount will cover the mortgage on a typical home in the area. According to recent real estate data, the median list price for homes in ZIP 99371 is around $218,000. Assuming a conventional 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment for a home priced at the median would be approximately $1050. Therefore, the FMR of $1410 is sufficient to cover the mortgage, leaving room for additional expenses such as property taxes, insurance, and maintenance.
Another concern could be whether there is enough renter demand at 23.3% vacancy rate. While this percentage suggests a moderate level of competition among rental properties, it also indicates that there is a significant portion of the housing stock available for renters. This balance can work in favor of landlords who offer competitive rates and maintain their properties well.
The final objection pertains to whether the government voucher program will keep pace with the market rents of $281. Given that the FMR is higher than the average market rent, landlords accepting vouchers should find that the payment levels are adequate to cover their costs. However, the data does not provide specific information on the growth rate of voucher amounts versus market rents. Landlords should monitor local trends and adjust their strategies accordingly to ensure long-term profitability.
In conclusion, the FMR of $1410 provides a solid foundation for covering mortgage payments and operational costs. The 23.3% vacancy rate suggests a manageable level of competition, while the voucher program should remain viable given the current market conditions. Nonetheless, investors must stay vigilant to adapt to any changes in the local real estate market.
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.