Section 8 Fair Market Rent (FMR) for ZIP 98059 - 2027

Investment Score for ZIP 98059

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	$2,270
1 Bedroom	$2,370
2 Bedrooms	$2,770
3 Bedrooms	$3,610
4 Bedrooms	$4,300
5 Bedrooms	$4,988
6 Bedrooms	$5,587
7 Bedrooms	$6,034
8 Bedrooms	$6,336

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	$2,370	$346,695	0.68%	D
2BR	$2,770	$540,660	0.51%	F
3BR	$3,610	$769,665	0.47%	F
4BR	$4,300	$1,079,372	0.4%	F
5BR	$4,988	$1,358,259	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98059 (Renton, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98059, as per HUD's 2026 guidelines, is set at $2690 for a two-bedroom unit. This figure represents 23.3% of the median household income in Renton, which stands at $138,654. The FMR is designed to reflect the average rent levels for decent, safe, and sanitary housing in the area. However, it is important to note that the actual rental prices in Renton can be significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $552,070, which translates to a monthly mortgage payment far exceeding the FMR. Given the high cost of living in the area, voucher holders face significant constraints in finding affordable housing. The disparity between the FMR and actual rental prices means that tenants with vouchers might struggle to find units that landlords are willing to accept at the FMR rate. #### Affordability & Renter Profile With a renter population of 23.4%, Renton has a relatively low percentage of residents who rent their homes compared to other areas. The occupancy rate of 97.3% suggests that the rental market is quite tight, indicating a strong demand for rental properties. The median household income of $138,654 implies that most residents are financially stable and can afford higher rental rates. However, the FMR for a two-bedroom unit being only $2690 indicates that there is a segment of the population that relies on affordable housing options. This creates a challenge for both renters and landlords, as the gap between the FMR and actual rental prices is substantial. The price-to-FMR ratio of 17.1x for a two-bedroom unit underscores the affordability issues faced by lower-income renters in the area. #### Investor Angle From an investor perspective, the ZIP code 98059 presents a mixed picture. While the FMR provides a baseline for rental pricing, the actual rental market is much more expensive. For example, the Zillow median price for a two-bedroom home is $552,070, which would translate to a monthly mortgage payment of approximately $2600 based on typical financing terms. This is very close to the FMR for a two-bedroom unit but does not account for additional expenses such as property taxes, insurance, maintenance, and management fees. These additional costs can easily push the total expenses above the FMR, making it challenging for investors to achieve positive cash flow solely relying on the FMR. Given the tight rental market and the high median household income, the investment grade for this ZIP code is likely to be moderate to high. Investors should consider the potential for higher rental income if they can attract non-voucher tenants willing to pay market rates. However, the reliance on Section 8 vouchers could limit the profitability due to the strict rent control measures imposed by the program. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should seek out properties where the actual rental price is below the FMR. For instance, a two-bedroom unit priced at $2690 or less would be more attractive to voucher holders and potentially offer better cash flow. This strategy requires careful selection of properties, possibly in older or less desirable neighborhoods. 2. **Consider Mixed-Income Developments**: Developing properties that cater to both voucher holders and market-rate tenants can help balance the financial risks. A mixed-income development might include a mix of units priced at FMR and those priced at market rates, allowing investors to leverage the higher income potential from market-rate units while still serving the needs of lower-income renters. 3. **Utilize Government Programs**: Investors can explore government programs beyond Section 8, such as Low-Income Housing Tax Credits (LIHTC), which provide tax incentives for developing affordable housing. These programs can offset some of the financial challenges associated with renting at FMR levels. #### Bottom Line For Section 8-focused investors, the ZIP code 98059 presents a challenging environment due to the high cost of living and the tight rental market. The recommendation is to **Skip** this ZIP code unless you can identify specific opportunities where the rental prices are below the FMR. If you do decide to invest, consider a mixed-income approach or leveraging additional government programs to enhance profitability. Overall, the high price-to-FMR ratio and limited number of voucher-accepting units make it difficult to achieve positive cash flow purely through Section 8 vouchers.

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.