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 | $2,260 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,750 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $4,270 |
| 5 Bedrooms | $4,953 |
| 6 Bedrooms | $5,547 |
| 7 Bedrooms | $5,991 |
| 8 Bedrooms | $6,291 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,350 | $319,491 | 0.74% | D |
| 2BR | $2,750 | $513,829 | 0.54% | F |
| 3BR | $3,590 | $942,304 | 0.38% | F |
| 4BR | $4,270 | $1,189,984 | 0.36% | F |
| 5BR | $4,953 | $1,588,023 | 0.31% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 98011, Bothell, WA, reveals a favorable environment for those seeking cashflow opportunities. The HUD Fair Market Rent (FMR) for the area is set at $2820 for fiscal year 2024, while the market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $2,275. This means that voucher tenants can provide a significant positive cashflow at the FMR rate, without the need for premium units.
To further understand the investment potential, consider the median home value of $1,057,907. The rent-to-price ratio, calculated using the HUD FMR, comes to approximately 0.267%. This low ratio suggests that rental income is relatively high compared to property values, which is beneficial for cashflow-focused investors. However, it also implies that the primary driver of returns in this market is likely to be through rental income rather than property appreciation.
The dynamics between renting and buying in ZIP 98011 do not significantly impact the decision-making process for Section 8 investors, given the N/A-day median DOM (Days on Market) and the 0.2% price-cut share. These figures indicate that properties in the area sell quickly and without substantial price reductions, suggesting a stable market with little need for aggressive pricing strategies.
In summary, the strongest angle for Section 8 investors in Bothell, WA, is cashflow. With the HUD FMR well above the market rent, investors can expect steady and reliable income streams from voucher tenants, making this area particularly attractive for those prioritizing rental income over capital gains or market stability.
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.