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 | $2,420 |
| 1 Bedroom | $2,520 |
| 2 Bedrooms | $2,950 |
| 3 Bedrooms | $3,850 |
| 4 Bedrooms | $4,580 |
| 5 Bedrooms | $5,313 |
| 6 Bedrooms | $5,951 |
| 7 Bedrooms | $6,427 |
| 8 Bedrooms | $6,748 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,520 | $371,931 | 0.68% | D |
| 2BR | $2,950 | $585,201 | 0.5% | F |
| 3BR | $3,850 | $1,081,444 | 0.36% | F |
| 4BR | $4,580 | $1,487,140 | 0.31% | F |
| 5BR | $5,313 | $1,715,564 | 0.31% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $3060 for zip code 98027 in Issaquah, WA, landlords can expect to align their rental pricing closely with the federal guidelines for the fiscal year 2024. The Zillow Observed Rent Index (ZORI) stands at $2,584, indicating that the actual market rent is below the FMR, which could be advantageous for those looking to attract tenants through competitive pricing. The median home value in this area is $1,196,796, reflecting a robust housing market where property investments can yield significant returns. Renter share in Issaquah is 32.4%, suggesting a substantial portion of the population relies on rental properties, making it a viable market for landlords. The median income of $153,301 provides insight into the financial capacity of potential tenants, supporting higher rental rates. Properties in this area typically spend 20 days on the market before being rented, demonstrating a brisk demand for housing. Only 0.2% of listings experience a price cut, which underscores the stability and strength of the rental market in Issaquah. Given these figures, the Section 8 program offers a reliable source of tenants for landlords, ensuring steady occupancy and income. However, the disparity between the FMR and ZORI suggests that landlords might need to adjust their expectations slightly when setting rental prices for Section 8 units.
Verdict: Issaquah, WA remains a strong investment for Section 8 landlords, despite the need to align rents with federal guidelines.
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.