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 | $2,680 |
| 1 Bedroom | $2,800 |
| 2 Bedrooms | $3,270 |
| 3 Bedrooms | $4,260 |
| 4 Bedrooms | $5,070 |
| 5 Bedrooms | $5,881 |
| 6 Bedrooms | $6,587 |
| 7 Bedrooms | $7,114 |
| 8 Bedrooms | $7,470 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,270 | $631,807 | 0.52% | F |
| 3BR | $4,260 | $1,191,607 | 0.36% | F |
| 4BR | $5,070 | $1,481,962 | 0.34% | F |
| 5BR | $5,881 | $1,748,106 | 0.34% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 98008 in Bellevue, WA might have several valid concerns. Let's address these directly using the available data.
Objection 1: Will FMR $3250 (zip FY 2024) cover the mortgage on a $1,429,008 home?
The Fair Market Rent (FMR) for ZIP 98008 is set at $3250 for fiscal year 2024. This figure represents the maximum amount that a Section 8 tenant can be expected to pay in rent. However, whether this will cover the mortgage on a home priced at $1,429,008 depends largely on the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage with an average interest rate of around 5%, the monthly mortgage payment for such a property could range between $7,500 to $8,000, significantly higher than the FMR. Therefore, the FMR alone is insufficient to cover the mortgage on a home of this value.
Objection 2: Is there enough renter demand at 28.0%?
The rental demand in ZIP 98008 stands at 28.0%. This percentage reflects the portion of households that are renters. While this figure indicates a moderate level of demand, it does not provide a complete picture. To understand if there is sufficient demand, we need to consider the total number of households and the vacancy rate. A vacancy rate below 5% generally suggests strong demand. Without specific vacancy rates or household numbers, the 28.0% figure alone is not conclusive but points towards a stable, if not robust, rental market.
Objection 3: Will vouchers keep pace with $3,666 market rents?
The market rent for ZIP 98008 is $3,666. The question here is whether the voucher amounts will increase sufficiently to meet or exceed this amount. The FMR is typically used as a benchmark for voucher amounts, but local housing authorities may adjust these based on supply and demand. In areas with high market rents, like ZIP 98008, it's critical to monitor how closely the voucher amounts track the FMR. If the FMR increases, it's likely that voucher amounts will also rise, but this is not guaranteed. The data does not specify future adjustments to voucher amounts, so caution is advised when relying solely on FMR trends to predict voucher coverage.
In conclusion, while the FMR provides a useful reference point for rental costs, it falls short of covering the mortgage on a home valued at $1,429,008. The 28.0% rental demand suggests stability but requires additional context to assess fully. Lastly, the alignment of voucher amounts with market rents remains uncertain without explicit data on future adjustments.
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.