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 | $2,560 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $4,070 |
| 4 Bedrooms | $4,840 |
| 5 Bedrooms | $5,614 |
| 6 Bedrooms | $6,288 |
| 7 Bedrooms | $6,791 |
| 8 Bedrooms | $7,131 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,120 | $969,108 | 0.32% | F |
| 3BR | $4,070 | $1,211,828 | 0.34% | F |
| 4BR | $4,840 | $1,675,358 | 0.29% | F |
| 5BR | $5,614 | $1,848,510 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 98077, Woodinville, WA, reveals a stark contrast between the Federal Market Rent (FMR) and the actual market rent levels. With an annualized FMR of $3300 for a two-bedroom unit in fiscal year 2024, the implied gross yield would be approximately 0.22%. This figure is derived by dividing the annual rent ($3300) by the median home value ($1,525,781).
In comparison, using the market rent of $2,697 (from the Census ACS), the implied gross yield drops to about 0.18%. These yields are calculated similarly, by dividing the annual market rent ($2,697 * 12 = $32,364) by the median home value.
Given the low renter density of 10.8%, it becomes evident that the market rent scenario is more realistic. The high median home value suggests that the area is predominantly owner-occupied, with a limited number of rental units. This makes it unlikely that landlords can consistently command the higher FMR rates set by the government program.
The N/A-day Days on Market (DOM) indicates that there might be insufficient data to accurately assess how quickly rental properties are leased in this area. However, considering the low renter density, it is reasonable to assume that the market for rental properties, especially those participating in Section 8, is relatively slow-moving.
Investors should focus on the market rent scenario when assessing potential returns in ZIP 98077. While the gross yield is lower at 0.18%, it provides a more accurate representation of what landlords can realistically expect from Section 8 participation in this zip code. The 0.22% yield based on FMR is less likely to materialize due to the limited demand for 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.