FY2027 Small Area FMR · Olympia, WA

ZIP 98506 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 98506 (Olympia, WA) is $1,780 a month, down 3.3% from FY2026. That is 9% below the Olympia-Lacey-Tumwater, WA area-wide FMR of $1,946.

2-bedroom SAFMR$1,780per month ▼ 3.3%

Area-wide 2 BR FMR$1,946Olympia-Lacey-Tumwater, WA

Rank in the area15thof 21 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,602

2 BR Small Area FMR$1,780

110% of SAFMR$1,958

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$1,450▲ 0.7%

1 BR$1,520▼ 3.8%

2 BR$1,780▼ 3.3%

3 BR$2,360▼ 3.7%

4 BR$2,960▼ 4.2%

FY2027 FY2026

Where 98506 sits in the Olympia-Lacey-Tumwater, WA area

Of the 21 ZIP codes HUD lists for the area, 98506 has the 15th highest two-bedroom Small Area FMR. Olympia-Lacey-Tumwater, WA is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,946 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,780 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,450	$1,305 – $1,595	$1,586	$1,440
1 bedroom	$1,520	$1,368 – $1,672	$1,656	$1,580
2 bedrooms	$1,780	$1,602 – $1,958	$1,946	$1,840
3 bedrooms	$2,360	$2,124 – $2,596	$2,541	$2,450
4 bedrooms	$2,960	$2,664 – $3,256	$3,141	$3,090

A household renting a two-bedroom home at the Small Area FMR of $1,780 needs about $71,200 a year to keep housing costs at 30% of income. The area median family income is $122,800 and the 80% low-income limit for four people is $98,250. ZIP code 98506 lies mainly in Thurston County. See the Olympia-Lacey-Tumwater, WA county page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
98516	Olympia	3.6 mi	$2,280
98505	Olympia	5.8 mi	$1,880
98503	Lacey	6.9 mi	$1,960
98502	Olympia	7.3 mi	$1,880
98351	Longbranch	7.8 mi	$1,940
98501	Olympia	9.0 mi	$1,930

Questions

What is the Fair Market Rent for ZIP code 98506?

HUD's FY2027 Small Area Fair Market Rents for 98506 are $1,450 (studio), $1,520 (1 BR), $1,780 (2 BR), $2,360 (3 BR) and $2,960 (4 BR) a month.

What is the Section 8 payment standard in 98506?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 98506 that range is $1,602 to $1,958 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 98506?

The FY2026 income limits of the Olympia-Lacey-Tumwater, WA area apply: median family income $122,800, low-income (80%) limit $98,250 for a family of four.