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 | $2,690 |
| 1 Bedroom | $2,810 |
| 2 Bedrooms | $3,280 |
| 3 Bedrooms | $4,280 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,280 | $3,460,743 | 0.12% | F |
| 4BR | $5,100 | $4,344,144 | 0.12% | F |
| 5BR | $5,916 | $6,360,828 | 0.09% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 98039 is favorable for landlords and small-portfolio investors. The Fair Market Rent (FMR) set at $3,430 for the fiscal year 2024 is slightly below the reported market rent of $3,501 based on Census ACS data. This indicates that landlords can expect to charge close to the FMR without significant adjustments, making it feasible to cover expenses and generate profit.
Acquisition in this area is moderately affordable given the median home value of $4,556,293. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts suggests that the market might be stable, but it's crucial to verify the specifics of individual properties before investing. Landlords should conduct thorough due diligence on potential acquisitions to ensure they align with their financial goals and risk tolerance.
Tenant demand in ZIP 98039 is moderate. With a total population of 2,928, approximately 20.5% of residents are renters. This translates to roughly 600 rental units in demand. While the number is not overwhelming, it does provide a steady base of potential tenants, especially considering the high median home value which may deter some from purchasing.
In conclusion, ZIP 98039 offers a viable investment opportunity for landlords and small-portfolio investors. The rent math is aligned closely with market conditions, suggesting minimal adjustment is needed to meet the FMR. Acquisition is possible but comes with a higher price tag, necessitating careful analysis of property values and market stability. Tenant demand, while not abundant, is consistent enough to support a modest portfolio. Given these factors, the area presents a balanced environment for real estate investment, particularly for those willing to manage a smaller number of high-value rental units.
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.