Section 8 Fair Market Rent (FMR) for ZIP 98007 - 2027

Investment Score for ZIP 98007

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP 98007 (Bellevue, WA) for Section 8 must follow a structured decision-making process based on the following criteria:

• Does FMR $3070 (zip FY 2024) clear debt service on a $1,045,136 property?
  • Yes: If the Fair Market Rent (FMR) of $3070 per month is sufficient to cover the debt service of a property valued at $1,045,136, then this ZIP code is financially viable for Section 8 investment. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. A detailed financial analysis would be required to confirm that $3070 indeed covers these expenses.
  • No: If the FMR does not cover the debt service, then purchasing a property for $1,045,136 would not be advisable. The landlord would incur losses each month, making the investment unsustainable in the long term.
• Is market rent $2,305 (ZORI) above, at, or below FMR?
  • Above: If the Zillow Observed Rental Index (ZORI) of $2,305 is below the FMR of $3070, it indicates that the market rent is lower than what the government will pay under Section 8. This scenario suggests a potential for higher rental income compared to market rates, making the investment more attractive.
  • At: If the ZORI is approximately equal to the FMR, the landlord can expect rental income similar to market rates. This equilibrium might still make the investment worthwhile if other factors such as demand and vacancy rates are favorable.
  • Below: If the ZORI is significantly below the FMR, it could indicate a less competitive market where landlords might struggle to find tenants willing to pay the higher Section 8 rate. This could lead to longer vacancy periods and decreased profitability.
• Are 64.4% renters + N/A-day DOM enough demand?
  • Yes: With 64.4% of residents being renters, there is a strong demand for rental properties in ZIP 98007. However, the lack of data on days on market (DOM) means that we cannot accurately assess how quickly properties are rented. Assuming a healthy rental market, the high percentage of renters supports the viability of an investment.
  • No: If the percentage of renters is not high enough or if the DOM indicates that properties take a long time to rent, then demand might not be sufficient to support a Section 8 investment. Landlords would need to ensure they can attract and retain tenants consistently.
  • It Depends: Without concrete DOM data, it's challenging to definitively gauge demand. High renter percentages are positive, but landlords must also consider other factors such as competition, local economy, and tenant preferences to make an informed decision.

In conclusion, a landlord should only proceed with a purchase in ZIP 98007 if the FMR adequately covers debt service, market rent is below or at the FMR, and there is sufficient demand indicated by high renter percentages and reasonable DOM figures. Without these conditions being met, the investment may not be profitable.

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.