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 | $2,920 |
| 1 Bedroom | $3,040 |
| 2 Bedrooms | $3,560 |
| 3 Bedrooms | $4,640 |
| 4 Bedrooms | $5,520 |
| 5 Bedrooms | $6,403 |
| 6 Bedrooms | $7,171 |
| 7 Bedrooms | $7,745 |
| 8 Bedrooms | $8,132 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,040 | $352,259 | 0.86% | C |
| 2BR | $3,560 | $540,077 | 0.66% | D |
| 3BR | $4,640 | $1,318,826 | 0.35% | F |
| 4BR | $5,520 | $1,773,892 | 0.31% | F |
| 5BR | $6,403 | $2,115,030 | 0.3% | F |
U.S. Census Bureau data (2024)
In ZIP code 98006, located in Bellevue, Washington, the median household income stands at $198,150. This figure places residents among some of the highest earners in the region, yet it still presents challenges when considering the market rate for rent, which is set at $3,682 per month (ZORI). Despite the high median income, the monthly rental costs represent a significant portion of household earnings, especially when factoring in other living expenses.
The Federal Market Rent (FMR) for the zip code for fiscal year 2024 is $3,720, which closely aligns with the ZORI. This indicates that the local rental market is fairly priced according to federal standards, leaving little room for substantial subsidies through housing vouchers. For renters, the near equivalence between market rates and FMR suggests limited financial relief from government assistance programs.
With 20.2% of the 40,009 population being renters, the competition among landlords in ZIP 98006 is relatively moderate. However, the affordability gap, where the median income barely covers the cost of rent, means that landlords must carefully consider their tenant acquisition strategies. The scarcity of affordable options for renters translates into a smaller pool of potential tenants who can afford market-rate rents without assistance.
For landlords, the decision between accepting voucher payments or focusing on cash-paying tenants should be informed by the local rental dynamics. Given the high median income, there is a strong presence of cash-paying tenants who can afford the market rates. However, the proximity of market rates to FMR also implies a viable option in accepting vouchers, particularly if the goal is to diversify tenant base and mitigate vacancy risks.
The takeaway for landlords is that while the high-income environment supports cash-paying tenants, the tight alignment of market rates with FMR makes voucher acceptance a strategic consideration. Landlords should evaluate their properties' suitability for voucher tenants and weigh the benefits against the administrative complexity involved in accepting them. In a competitive market, flexibility in payment options can be a key differentiator in attracting and retaining tenants.
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.