FY2027 Small Area FMR · Olympia, WA

ZIP 98516 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 98516 (Olympia, WA) is $2,280 a month, down 1.7% from FY2026. That is 17% above the Olympia-Lacey-Tumwater, WA area-wide FMR of $1,946.

2-bedroom SAFMR$2,280per month ▼ 1.7%

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

Rank in the area1stof 21 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$2,052

2 BR Small Area FMR$2,280

110% of SAFMR$2,508

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

Studio$1,860▲ 2.2%

1 BR$1,940▼ 2.5%

2 BR$2,280▼ 1.7%

3 BR$2,980▼ 3.6%

4 BR$3,680▼ 5.4%

FY2027 FY2026

Where 98516 sits in the Olympia-Lacey-Tumwater, WA area

Of the 21 ZIP codes HUD lists for the area, 98516 has the 1st 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 $2,280 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	$1,860	$1,674 – $2,046	$1,586	$1,820
1 bedroom	$1,940	$1,746 – $2,134	$1,656	$1,990
2 bedrooms	$2,280	$2,052 – $2,508	$1,946	$2,320
3 bedrooms	$2,980	$2,682 – $3,278	$2,541	$3,090
4 bedrooms	$3,680	$3,312 – $4,048	$3,141	$3,890

A household renting a two-bedroom home at the Small Area FMR of $2,280 needs about $91,200 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 98516 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
98506	Olympia	3.6 mi	$1,780
98303	Anderson Island	5.8 mi	$2,230
98503	Lacey	6.0 mi	$1,960
98327	Dupont	6.2 mi	$2,630
98351	Longbranch	6.3 mi	$1,940
98388	Steilacoom	8.6 mi	$2,050

Questions

What is the Fair Market Rent for ZIP code 98516?

HUD's FY2027 Small Area Fair Market Rents for 98516 are $1,860 (studio), $1,940 (1 BR), $2,280 (2 BR), $2,980 (3 BR) and $3,680 (4 BR) a month.

What is the Section 8 payment standard in 98516?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 98516 that range is $2,052 to $2,508 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 98516?

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.