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 | $2,600 |
| 1 Bedroom | $2,710 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $4,130 |
| 4 Bedrooms | $4,920 |
| 5 Bedrooms | $5,707 |
| 6 Bedrooms | $6,392 |
| 7 Bedrooms | $6,903 |
| 8 Bedrooms | $7,248 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,710 | $322,559 | 0.84% | C |
| 2BR | $3,170 | $550,715 | 0.58% | F |
| 3BR | $4,130 | $871,345 | 0.47% | F |
| 4BR | $4,920 | $1,215,264 | 0.4% | F |
| 5BR | $5,707 | $1,476,803 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP 98021, located in Bothell, WA, within the Seattle-Bellevue, WA HUD Metro FMR Area, is best suited as an appreciation play in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $3140, which is above the current market rent of $2,746. This indicates that properties in this ZIP code are currently undervalued relative to their potential rental income under Section 8 guidelines.
The median home value in ZIP 98021 is $1,146,099, reflecting a high-end market. Despite this, the ZIP code has a relatively low 0.3% price-cut share, meaning that few properties are being sold at a discount. Additionally, the days on market (DOM) for homes is only 9 days, indicating strong demand and quick sales. These factors suggest that property values in 98021 are likely to appreciate over time, making it an attractive investment for long-term capital growth.
The 18.9% renter share and median income of $183,786 also support the appreciation play strategy. While the renter share is not exceptionally high, the median income is quite robust, ensuring a stable and financially capable tenant base. Landlords and small-portfolio investors can expect that tenants in this area will be able to afford higher rents as the market adjusts, leading to potential increases in rental income over time.
In conclusion, ZIP 98021 should be considered an appreciation play within a Section 8 portfolio strategy. Its undervalued status based on the FMR, combined with strong property value appreciation potential and a financially secure tenant population, makes it a solid choice for investors looking to build long-term equity while maintaining positive cash flow.
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.