Section 8 Fair Market Rent (FMR) for ZIP 98034 - 2027

Investment Score for ZIP 98034

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	$2,410
1 Bedroom	$2,510
2 Bedrooms	$2,940
3 Bedrooms	$3,830
4 Bedrooms	$4,560
5 Bedrooms	$5,290
6 Bedrooms	$5,925
7 Bedrooms	$6,399
8 Bedrooms	$6,719

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	$2,510	$325,336	0.77%	D
2BR	$2,940	$445,736	0.66%	D
3BR	$3,830	$1,016,733	0.38%	F
4BR	$4,560	$1,249,678	0.36%	F
5BR	$5,290	$1,521,098	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98034 (Kirkland, WA) #### Section 8 Voucher Dynamics In ZIP code 98034, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2860 per month for 2026. This figure represents 25.4% of the median household income of $135,219. However, the actual median rent for a two-bedroom unit on Zillow is $462,848 annually, which translates to approximately $38,571 per month. This means that the price-to-FMR ratio is 13.5x, indicating that actual market rents are significantly higher than the FMR. For Section 8 voucher holders, this presents a significant constraint. The maximum rental amount they can pay is capped at $2860 per month, which is far below the market rate. As such, finding affordable housing within the voucher limits is challenging. Additionally, landlords may be hesitant to accept vouchers due to the high discrepancy between FMR and market rents. #### Affordability & Renter Profile The ZIP code 98034 has a population of 52,531, with 40.8% of residents being renters. This indicates a substantial demand for rental properties. The occupancy rate of 94.1% suggests that the market is relatively tight, with few vacant units available. Given the median household income of $135,219, it is clear that the majority of residents have high incomes, making it difficult for lower-income individuals to afford housing without assistance. The high median rent and the low FMR indicate that the market is very tight, especially for those relying on Section 8 vouchers. The disparity between the FMR and the actual median rent for a two-bedroom unit ($2860 vs. $38,571) highlights the affordability challenges faced by low-income renters. #### Investor Angle From an investor perspective, the ZIP code 98034 offers limited opportunities for cash flow positivity at the FMR levels. The FMR for a two-bedroom unit is $2860, while the actual median rent is $38,571 per month. This means that even if an investor were to rent out a property at the FMR, they would likely face significant financial pressure due to the high cost of acquiring and maintaining the property. Given the high price-to-FMR ratio of 13.5x, the investment grade for this ZIP code is poor for Section 8-focused investors. The returns on investment would be minimal, and the risk of vacancy is higher due to the limited pool of potential tenants who can afford the rent within their voucher limits. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower, investors might consider focusing on developing or purchasing smaller units. For instance, the FMR for a one-bedroom unit is $2450, which is still well below the market rate but could provide slightly better cash flow compared to larger units. 2. **Target Lower-Income Neighborhoods**: Within ZIP code 98034, there may be pockets where the median rent is closer to the FMR. Investors should conduct detailed neighborhood-level analyses to identify areas with more affordable rents. This could involve looking at specific streets or complexes that cater to lower-income renters. 3. **Consider Alternative Rental Assistance Programs**: Given the limitations of Section 8 vouchers in this market, investors might explore alternative rental assistance programs that offer higher subsidies or fewer restrictions. These programs could help bridge the gap between the FMR and the actual market rents. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 98034 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow. Additionally, the limited number of potential tenants who can afford the rent within their voucher limits increases the risk of vacancy and financial strain. ### Summary ZIP code 98034 (Kirkland, WA) is characterized by a high median household income and a tight rental market. The Fair Market Rent (FMR) for a two-bedroom unit is $2860, which is only 25.4% of the median income, whereas the actual median rent is $38,571 per month. This results in a price-to-FMR ratio of 13.5x, indicating that the market rents are significantly higher than the FMR. For Section 8 voucher holders, this means finding affordable housing is extremely difficult. From an investment standpoint, the ZIP code offers poor prospects for cash flow positivity at FMR levels. Therefore, the recommendation for Section 8-focused investors is to skip this market.

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.