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 | $2,440 |
| 1 Bedroom | $2,540 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,870 |
| 4 Bedrooms | $4,610 |
| 5 Bedrooms | $5,348 |
| 6 Bedrooms | $5,990 |
| 7 Bedrooms | $6,469 |
| 8 Bedrooms | $6,792 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,970 | $806,497 | 0.37% | F |
| 3BR | $3,870 | $1,064,691 | 0.36% | F |
| 4BR | $4,610 | $1,656,597 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 98024, which encompasses Fall City, Washington, presents an interesting scenario when viewed from the renter's perspective. The median household income in this area stands at a robust $160,641. However, the market rent rate, according to the Census Bureau's American Community Survey (ACS), is set at $2,000. This creates a significant challenge for renters, as the monthly housing cost represents a substantial portion of their income.
To further complicate matters, the Fair Market Rent (FMR) for ZIP 98024, as determined by the Department of Housing and Urban Development (HUD) for fiscal year 2024, is pegged at $2,760. This figure is notably higher than the market rent rate, indicating a potential disparity between what HUD considers fair and what the local market dictates. For renters relying on Section 8 vouchers, this means they might face difficulty finding units that accept their voucher, given that landlords would receive less than the HUD-specified FMR.
In Fall City, only 10.6% of the population are renters, with a total population of 3,908. This low percentage of renters suggests a relatively limited pool of potential tenants, which could impact landlord competition. Landlords who choose to accept Section 8 vouchers might find themselves competing in a niche market where the number of available rental units is already constrained. Conversely, those who opt for cash-paying tenants might face a broader but still competitive market, given the high median income and the overall cost of living in the area.
The takeaway for landlords considering their strategy in ZIP 98024 is clear: accepting Section 8 vouchers can be a viable option, but it comes with the caveat of receiving payments below the market rate. On the other hand, focusing on cash-paying tenants allows for capturing the full market rent, but it requires navigating a competitive landscape with fewer potential renters. Landlords should carefully weigh these factors, considering both the financial implications and the demographic realities of Fall City, before deciding on their rental strategy.
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.