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 | $2,280 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,620 |
| 4 Bedrooms | $4,310 |
| 5 Bedrooms | $5,000 |
| 6 Bedrooms | $5,600 |
| 7 Bedrooms | $6,048 |
| 8 Bedrooms | $6,350 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,380 | $301,487 | 0.79% | D |
| 2BR | $2,780 | $547,549 | 0.51% | F |
| 3BR | $3,620 | $843,213 | 0.43% | F |
| 4BR | $4,310 | $1,091,153 | 0.39% | F |
| 5BR | $5,000 | $1,242,985 | 0.4% | F |
U.S. Census Bureau data (2024)
Bothell (98012) blends a historic downtown core with modern suburban expansion, offering investors access to the high-growth North Creek technology corridor. This area is defined by proximity to major employers like the University of Washington Bothell, which anchors the local economy and drives consistent housing demand from faculty and staff. The neighborhood features a mix of established single-family streets and newer townhome developments, with the North Creek Trail providing key recreational connectivity for residents. It is a family-centric environment where quiet residential blocks intersect with expanding commercial zones.
From a financial perspective, the ZIP presents a significant upside for Section 8 strategies. The HUD SAFMR for a 2-bedroom unit sits at $2,750, which comfortably exceeds the current market rent of $2,370. This creates a premium gap of $380 per month, allowing voucher holders to outbid standard market applicants. While the barrier to entry is high—indicated by a median home value of $999,062 and a rapid 20-day median time on market—the rental spread is unusually favorable. Investors accepting vouchers can effectively secure guaranteed payments well above the Zillow market rate.
The tenant pool is robust, supported by a 33.6% renter share and a wealthy median household income of $146,144. Although the general population is affluent, voucher demand remains steady due to the presence of the university and nearby medical centers, which employ lower-income support staff. The area is served by the highly rated Northshore School District, a major draw for families, and offers decent transit links via I-405 and nearby Sound Transit stations. These amenities help maintain occupancy and ensure a steady stream of qualified applicants seeking quality housing near schools and jobs.
The strongest investor angle here is cashflow maximization through subsidy arbitrage. Because the HUD payment ceiling is higher than the prevailing market rent, 2-bedroom units generate immediate positive leverage without needing to raise rents on existing tenants. With 4-bedroom vouchers reaching $4,140 against the $2,690 2-bedroom market baseline, larger units offer even greater potential for margin expansion. For portfolios able to handle the nearly seven-figure acquisition cost, 98012 provides a rare combination of high-end stability and government-backed rental premiums.
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.