Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,890 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
U.S. Census Bureau data (2024)
ZIP 98030, located in Kent, WA, within the Seattle-Bellevue, WA HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for this ZIP code in fiscal year 2024 is set at $2430, significantly higher than the average market rent of $1885. This spread ensures that landlords can rely on consistent rental income, which is crucial for maintaining positive cash flow.
The median home value in ZIP 98030 stands at $643,285. However, the primary focus for a Section 8 portfolio should be on rental properties rather than home values. With the FMR well above the market rent, landlords can secure steady, government-backed payments without the volatility associated with market fluctuations.
This ZIP code also presents some challenges that make it less suitable for an appreciation play. For instance, the price-cut share is at 0.3%, indicating that homes are rarely being sold at a discount. Additionally, the Days on Market (DOM) for listings is 28 days, which is relatively short, suggesting a competitive market that does not favor long-term appreciation strategies.
While ZIP 98030 has a renter share of 47.8% and a median income of $91,761, these factors do not necessarily qualify it as a diversifier. Diversification typically involves spreading risk across different types of investments or markets. In this case, the high FMR relative to market rent makes it more attractive as a stable income source rather than a means to diversify against other types of investment risks.
In conclusion, ZIP 98030 is best suited as a cash-flow anchor due to the significant spread between the FMR and the market rent. Landlords and small-portfolio investors can count on reliable, above-market rental income, making it a solid choice for those looking to stabilize their financial returns within a Section 8 portfolio strategy.
Data Sources: FMR data from HUD (2027). 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.