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 | $1,990 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,750 |
| 5 Bedrooms | $4,350 |
| 6 Bedrooms | $4,872 |
| 7 Bedrooms | $5,262 |
| 8 Bedrooms | $5,525 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,070 | $273,625 | 0.76% | D |
| 2BR | $2,420 | $505,332 | 0.48% | F |
| 3BR | $3,160 | $683,421 | 0.46% | F |
| 4BR | $3,750 | $806,360 | 0.47% | F |
| 5BR | $4,350 | $890,238 | 0.49% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 98043, which includes Mountlake Terrace, WA, is set at $2490 for the fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will be setting; it is the ceiling for what the government will subsidize.
In comparison, the typical market rent in this area, known as the Zillow Observed Rent Index (ZORI), is currently around $2,088. This suggests that the FMR is higher than the average rent, giving you a bit of leeway when setting your own rental rates. However, you should ensure that your rent does not exceed the $2490 limit if you want to participate in the Section 8 program.
The demand for rentals in this area is strong, with 43.2% of residents being renters. This high percentage indicates a healthy market for rental properties, particularly those that are affordable through programs like Section 8. The average home value in Mountlake Terrace is approximately $699,207, which gives you an idea of the potential acquisition costs if you're looking to purchase a property for your rental portfolio.
If you're considering your first Section 8 rental in ZIP 98043, one key factor to verify is the condition of the property against the Housing Quality Standards (HQS). These standards ensure that the rental unit meets certain safety and quality criteria before it can be approved for the program. This step is crucial because failing to meet these requirements can delay your participation in the program, impacting your potential income.
To summarize, the FMR of $2490 provides a clear guideline for maximum rent under Section 8, while the ZORI of $2,088 shows that the subsidy rate is above the average market rent. With a significant 43.2% of residents renting and an average home value of $699,207, there is a solid foundation for investing in Section 8 properties in Mountlake Terrace. Before proceeding, make sure your property meets the necessary HQS to avoid any complications.
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.