Section 8 Fair Market Rent (FMR) for ZIP 98058 - 2027

Investment Score for ZIP 98058

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	$2,160
1 Bedroom	$2,250
2 Bedrooms	$2,630
3 Bedrooms	$3,430
4 Bedrooms	$4,080
5 Bedrooms	$4,733
6 Bedrooms	$5,301
7 Bedrooms	$5,725
8 Bedrooms	$6,011

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	$2,250	$248,923	0.9%	C
2BR	$2,630	$409,000	0.64%	D
3BR	$3,430	$678,751	0.51%	F
4BR	$4,080	$807,228	0.51%	F
5BR	$4,733	$920,011	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98058 (Renton, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 98058 in 2026 indicate that the maximum allowable rent for a two-bedroom apartment is $2560. However, the Zillow median price for a two-bedroom rental in this area is $409,902, which translates to a monthly rent of approximately $3416 when considering typical mortgage payments and property taxes. This means that the actual rent in the area significantly exceeds the FMR by about $856 per month. For voucher holders, this implies a substantial gap between what they can afford and what landlords might charge. The constraints for voucher holders include having to find landlords willing to accept lower rents than the market rate, which can be challenging given the high demand and limited supply of affordable housing units. #### Affordability & Renter Profile In ZIP 98058, the median household income is $115,201, and 27.5% of the population are renters. The occupancy rate stands at 95.7%, indicating a very tight market where most available units are already occupied. Given that the FMR for a two-bedroom unit represents only 26.7% of the median income, it suggests that the majority of residents can afford higher rents. However, for those relying on Section 8 vouchers, the affordability gap is significant. With the actual rent being over 30% higher than the FMR, it becomes clear that the market is undersupplied with affordable units, making it difficult for low-income renters to secure housing without additional support. #### Investor Angle From an investor perspective, the ZIP code 98058 presents a mixed picture. While the Zillow median price for a two-bedroom rental is quite high at $409,902, the FMR of $2560 would need to be considered for potential cash flow. If an investor were to purchase a property at the Zillow median price and rent it out at the FMR, the monthly rent would cover only a small fraction of the mortgage payment, likely leading to negative cash flow. To determine the investment grade, we must consider the potential for long-term appreciation and the stability of the rental market. Given the high occupancy rates and the strong local economy, there is a good chance that property values will continue to rise, but the immediate cash flow would be a concern for investors focusing solely on Section 8 tenants. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For instance, a two-bedroom unit priced at around $2560 per month would be more attractive to voucher holders and could potentially offer better cash flow. This strategy involves identifying areas within Renton where property values are lower or negotiating with sellers to acquire units at a discount. 2. **Consider Government Subsidies**: Given the high cost of living in Renton, investors might want to explore government subsidies or programs designed to help bridge the gap between FMR and market rents. These programs could provide additional revenue streams that make the investment more viable. 3. **Diversify Tenant Base**: To mitigate the risk of negative cash flow, investors might consider diversifying their tenant base. This could involve renting to a mix of voucher holders and other renters who can pay market rates. By doing so, the overall financial burden on the property can be reduced, and the investment can become more sustainable. #### Bottom Line For Section 8-focused investors, the ZIP code 98058 presents a challenging environment due to the significant disparity between FMR and actual market rents. The recommendation would be to **Skip** this ZIP code unless investors have access to additional subsidies or can identify units priced closer to the FMR. The tight market and high occupancy rates suggest that finding affordable units for voucher holders will be difficult, and the immediate cash flow would likely be negative. Therefore, unless investors can leverage other financial tools or strategies to offset these risks, this ZIP code is not recommended for Section 8 investments.

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.