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 | $1,980 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,060 | $618,745 | 0.33% | F |
| 2BR | $2,410 | $845,014 | 0.29% | F |
| 3BR | $3,140 | $1,095,046 | 0.29% | F |
| 4BR | $3,740 | $1,451,638 | 0.26% | F |
| 5BR | $4,338 | $1,733,095 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 98020, located in Edmonds, WA, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2,610, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,314. This means that the FMR is $296 higher than the market rent, representing an increase of approximately 12.8%.
In this scenario where the FMR exceeds the market rent, voucher tenants can significantly enhance a landlord's yield. The higher FMR compensates landlords for renting their properties at below-market rates, ensuring they receive a stable income that is closer to what they would get if renting to non-voucher tenants at current market prices. This is particularly beneficial given that only 25.1% of residents in Edmonds are renters, making it essential for landlords to maximize their rental income from the available pool of tenants.
The median home value in Edmonds stands at $1,158,756, which underscores the relatively high property values in the area. However, the median income of $130,319 suggests that many potential tenants might struggle to afford market rents. Consequently, the Section 8 program serves as a bridge, enabling lower-income individuals to secure housing without placing undue financial strain on landlords.
Investing in Section 8 properties in ZIP 98020 allows landlords to capitalize on the government subsidy, which covers the difference between the market rate and the FMR. This makes it possible to offer affordable housing options while still achieving a competitive rental yield. Additionally, the program offers stability and predictability in terms of rental income, which is crucial for long-term investment planning.
Landlords should be aware that there are certain responsibilities associated with accepting Section 8 vouchers. These include maintaining the property to specific standards and adhering to HUD regulations. Nonetheless, the benefits of participating in the Section 8 program, especially in a market where the FMR is above the market rent, outweigh these considerations. The program ensures a steady stream of income, protects against vacancy, and provides a valuable service to the community.
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.