Section 8 Fair Market Rent (FMR) for ZIP 98033 - 2027

Investment Score for ZIP 98033

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	$2,730
1 Bedroom	$2,850
2 Bedrooms	$3,330
3 Bedrooms	$4,340
4 Bedrooms	$5,170
5 Bedrooms	$5,997
6 Bedrooms	$6,717
7 Bedrooms	$7,254
8 Bedrooms	$7,617

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	$2,850	$536,724	0.53%	F
2BR	$3,330	$876,118	0.38%	F
3BR	$4,340	$1,467,201	0.3%	F
4BR	$5,170	$2,001,023	0.26%	F
5BR	$5,997	$2,555,193	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98033 (Kirkland, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98033 is set by HUD for 2026 as follows: - 0BR: $2700 - 1BR: $2800 - 2BR: $3260 (which represents 21.4% of the median household income of $182,500) - 3BR: $4270 - 4BR: $5010 However, the actual rental market in Kirkland is significantly higher. The Zillow median price for a 2-bedroom apartment is $918,887, which translates into a monthly rent that far exceeds the FMR. For instance, if we assume a typical mortgage payment for a property priced at $918,887, including principal, interest, taxes, and insurance (PITI), the monthly cost would be approximately $4,500 based on current interest rates and property tax assessments. This is nearly 1.4 times the FMR for a 2BR unit. This disparity creates significant constraints for voucher holders. They can only afford units that are priced at or below the FMR, which is a small fraction of the available rental stock. Consequently, voucher holders often face challenges in finding suitable housing within their budget, leading to high competition for affordable units. #### Affordability & Renter Profile ZIP code 98033 has a population of 40,982, with 36.8% of residents being renters. Given the median household income of $182,500, it is clear that the majority of residents are well-off, with many likely employed in high-paying tech jobs given the proximity to Seattle and the presence of major companies like Amazon and Google. Despite the high median income, the rental market is extremely tight. The occupancy rate of 94.3% indicates that most units are occupied, leaving very little room for new tenants. Additionally, the price-to-FMR ratio of 23.5x suggests that the average rent is over 23 times the FMR, making it highly unaffordable for low-income households. This tight market means that those who can afford the high rents are likely to find housing quickly, while those who cannot are left out. #### Investor Angle From an investor perspective, the ZIP code 98033 presents a challenging environment for cash flow-positive investments at FMR levels. With the FMR for a 2BR unit at $3260 and the Zillow median price indicating a much higher rent, properties rented at FMR levels will struggle to cover costs, especially considering the high mortgage payments and maintenance expenses associated with such expensive properties. To determine the investment grade, we need to consider the cash flow potential. If a 2BR unit is rented at $3260 per month but the mortgage payment alone is around $4,500, the property will not generate positive cash flow. Furthermore, the high property values suggest that the capital appreciation potential is limited due to the already inflated prices. Thus, the investment grade for this ZIP code is relatively poor for Section 8-focused investors. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced at or below the FMR levels. This will ensure that they can attract voucher holders and maintain positive cash flow. For example, a 2BR unit priced at $3260 per month could be a viable option if the acquisition cost is low enough to cover all expenses. 2. **Consider Renovation Projects**: Given the high demand for affordable housing, investors might consider purchasing older, less desirable properties and renovating them to meet the FMR standards. This approach could provide a better return on investment, as the renovated units would still be affordable to voucher holders but could command slightly higher rents due to improved quality. 3. **Utilize Government Programs**: Investors should explore government programs designed to support affordable housing, such as Low-Income Housing Tax Credits (LIHTC). These programs can help offset the financial burden of renting at FMR levels and make the investment more attractive. #### Bottom Line For Section 8-focused investors, the ZIP code 98033 (Kirkland, WA) is not a favorable market. The high rental prices and tight market conditions make it difficult to find properties that can generate positive cash flow when rented at FMR levels. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments unless you can secure extremely affordable units or leverage significant renovation opportunities to improve profitability. In summary, the high cost of living and the limited availability of affordable units make this area unsuitable for investors looking to capitalize on the Section 8 program.

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.