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 | $2,420 |
| 1 Bedroom | $2,520 |
| 2 Bedrooms | $2,950 |
| 3 Bedrooms | $3,850 |
| 4 Bedrooms | $4,580 |
| 5 Bedrooms | $5,313 |
| 6 Bedrooms | $5,951 |
| 7 Bedrooms | $6,427 |
| 8 Bedrooms | $6,748 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,520 | $383,484 | 0.66% | D |
| 2BR | $2,950 | $563,998 | 0.52% | F |
| 3BR | $3,850 | $1,389,929 | 0.28% | F |
| 4BR | $4,580 | $1,939,300 | 0.24% | F |
| 5BR | $5,313 | $2,315,175 | 0.23% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 98005, located in Bellevue, WA, within King County, operate under specific financial parameters. For fiscal year 2024, the SAFMR (Zip Code Level Fair Market Rent) for a two-bedroom apartment is set at $3090. This SAFMR is the maximum amount that the Housing Choice Voucher program will pay for a rental unit in this specific ZIP code.
In contrast, the local market rent for a two-bedroom apartment, as measured by Zillow's Observed Rental Index (ZORI), stands at $2,547. This indicates that the SAFMR exceeds the local market rent, which is beneficial for landlords participating in the Section 8 program.
A landlord should understand that the actual reimbursement from a voucher includes the tenant's portion of the rent plus any utility allowances. Typically, tenants are expected to contribute 30% of their adjusted income towards rent. If a tenant's adjusted income is $1,000 per month, they would pay $300 toward the rent. The remainder of the rent up to the SAFMR is covered by the voucher program.
The utility allowance is a fixed amount determined by HUD and varies based on the size of the unit and the region. In King County, the utility allowance for a two-bedroom unit is generally around $250-$300 per month. This allowance is added to the voucher payment to cover utilities, ensuring that the total rent and utility costs do not exceed the SAFMR.
To illustrate, if the SAFMR is $3090, and the tenant contributes $300, the voucher program would pay the difference, which is $2790. Adding a utility allowance of $250, the total reimbursement would be $3040. Therefore, landlords receive a total of $3040 from the voucher program and the tenant, which is slightly below the SAFMR but above the local market rent of $2,547.
This results in a surplus for landlords, as the reimbursement amount exceeds the typical local market rent. In ZIP 98005, the surplus for a two-bedroom apartment would be approximately $493 per month, making it financially advantageous for landlords to accept Section 8 vouchers.
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.