Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area
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 | $3,130 |
| 1 Bedroom | $3,270 |
| 2 Bedrooms | $3,820 |
| 3 Bedrooms | $4,980 |
| 4 Bedrooms | $5,930 |
| 5 Bedrooms | $6,879 |
| 6 Bedrooms | $7,704 |
| 7 Bedrooms | $8,320 |
| 8 Bedrooms | $8,736 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,270 | $596,214 | 0.55% | F |
| 2BR | $3,820 | $988,755 | 0.39% | F |
| 3BR | $4,980 | $2,107,850 | 0.24% | F |
| 4BR | $5,930 | $3,171,743 | 0.19% | F |
| 5BR | $6,879 | $4,291,931 | 0.16% | F |
U.S. Census Bureau data (2024)
The ZIP code 98004 in Bellevue, WA, presents an interesting scenario when analyzing housing affordability from a renter's perspective. The median household income in this area stands at $182,545, which is significantly higher than the national average. However, the market rate for rent, measured by Zillow's Observed Rent Index (ZORI), is $2,842 per month. This places a considerable strain on households, even those with above-average incomes.
To put this into perspective, let's consider the Family Monthly Income (FMI) guideline. A household earning the median income would spend approximately 17% of their monthly income on rent alone, assuming a 30-day month. This leaves little room for other expenses, such as utilities, groceries, and transportation, which are essential for maintaining a decent standard of living.
ZIP 98004 also has a high concentration of renters, with 63.6% of the population renting their homes. Given the total population of 39,897, this means there are roughly 25,363 renters in the area. The demand for rental properties is thus substantial, but the affordability gap between the median income and the market rent rate poses a challenge for many residents.
Landlords and small-portfolio investors should be aware of the Federal Market Rent (FMR) standards for the zip code, which are set at $3,950 for fiscal year 2024. This figure represents the maximum amount that Housing Choice Vouchers can cover for rent in the area. While it is higher than the market rate, the difference highlights a significant opportunity for voucher-assisted tenants. Landlords who accept vouchers can potentially fill vacancies faster and ensure steady rental income, especially given the competition among properties.
The takeaway for landlords considering whether to accept voucher tenants or focus solely on cash-paying renters is clear. Accepting vouchers can provide a competitive edge in a crowded market where many potential tenants struggle to meet market rates. It offers a way to stabilize occupancy and attract reliable tenants, particularly in an area where a large portion of the population rents. While the upfront process might seem cumbersome, the long-term benefits can outweigh the initial effort, ensuring a steady stream of income and minimizing vacancy periods.
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.