Section 8 Fair Market Rent (FMR) for ZIP 98031 - 2027

Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area

Investment Score for ZIP 98031

D
Monthly Rent (2BR)
$2,500
Median Price (2BR)
$362,760
1% Rule
0.69%
Annual Yield
8.27%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$2,050
1 Bedroom$2,140
2 Bedrooms$2,500
3 Bedrooms$3,260
4 Bedrooms$3,880
5 Bedrooms$4,501
6 Bedrooms$5,041
7 Bedrooms$5,444
8 Bedrooms$5,716

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $2,140 $324,146 0.66% D
2BR $2,500 $362,760 0.69% D
3BR $3,260 $612,091 0.53% F
4BR $3,880 $722,203 0.54% F
5BR $4,501 $830,507 0.54% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
40,094
Median Household Income
$105,965
Housing Units
14,599
Renter Percentage
32.8%
Occupancy Rate
96.0%
Renter Occupied
4,596

The market in ZIP 98031, Kent, WA, is dynamic and currently favoring demand over supply. This inference is drawn from the snapshot of the Fair Market Rent (FMR) set at $2,380 for zip FY 2024, which is higher than the Zillow Observed Rent Index (ZORI) at $2,182. This suggests that the rental market is robust, with rents trending upwards as landlords adjust to the FMR benchmark.

A low price-cut share of 0.2% indicates that landlords are generally not having to lower their asking prices to attract tenants, further supporting the notion of strong demand. Additionally, a short days on market (DOM) of 9 days reflects quick turnover and high interest in available properties, signaling a competitive environment for renters.

The median home value stands at $679,950, suggesting a relatively stable and valued residential real estate market. With a significant 32.8% of the population renting, this ZIP code experiences ongoing housing pressure. The substantial renter share implies a continuous need for rental properties, as many residents may be unable to afford homeownership given the median home value. This dynamic can create long-term pressure on rental rates, as the demand for affordable housing remains persistent.

In summary, ZIP 98031 presents a market where demand appears to outpace supply, driven by a robust rental market and a notable portion of the population relying on rentals. Landlords and small-portfolio investors should anticipate a competitive landscape but also recognize the potential for steady rental income and property appreciation.

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.