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 | $2,580 |
| 1 Bedroom | $2,690 |
| 2 Bedrooms | $3,150 |
| 3 Bedrooms | $4,110 |
| 4 Bedrooms | $4,890 |
| 5 Bedrooms | $5,672 |
| 6 Bedrooms | $6,353 |
| 7 Bedrooms | $6,861 |
| 8 Bedrooms | $7,204 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,690 | $366,457 | 0.73% | D |
| 2BR | $3,150 | $647,553 | 0.49% | F |
| 3BR | $4,110 | $1,203,545 | 0.34% | F |
| 4BR | $4,890 | $1,662,668 | 0.29% | F |
| 5BR | $5,672 | $1,963,712 | 0.29% | F |
U.S. Census Bureau data (2024)
Redmond 98052 is a high-density, technology-driven core often recognized as the "Bicycle Capital of America" due to its extensive trail network and urban planning. The neighborhood is defined by its proximity to major employment hubs, most notably Microsoft’s world headquarters, which anchors the local economy and attracts a steady stream of high-income professionals. The area features a mix of modern high-rise apartments and established single-family neighborhoods, all serviced by the Link light rail extension which significantly improves transit connectivity to downtown Seattle.
From an investment standpoint, the divergence between subsidized and market rates is stark. The FY2024 HUD SAFMR for a 2-bedroom unit sits at $3,200, whereas the current market rent (Zillow ZORI) is significantly lower at $2,392, creating a premium gap of $808 per month for voucher holders. Asset values remain elevated, with a median home value of $1,364,873 and a median 2BR sale price of $672,772. Inventory moves rapidly here, with a median days on market of just 13 days, indicating a competitive sales environment despite the high price points.
The tenant pool is robust, characterized by a renter share of 55.2% and a median household income of $163,460. While the general population is affluent, voucher demand is supported by the area’s top-tier amenities, including highly rated schools like Redmond High School and the pedestrian-friendly Redmond Town Center. The high median income suggests a low-risk environment for landlords, as even cost-burdened renters in this market typically have stronger earning potential than in other regions.
For Section 8 investors, the strongest angle is stability via rate locking. With the $3,200 SAFMR exceeding market rents by over $800, accepting vouchers provides a substantial revenue cushion that is rare in this zip code. The 13-day turnover rate for properties implies high demand, ensuring that units will not sit vacant. While the barrier to entry is high given the $1.3M+ median home value, the ability to secure well-above-market rents makes this a defensive, cash-flow-positive play for those who can acquire assets here.
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.