Section 8 Fair Market Rent (FMR) for ZIP 98092 - 2027

Investment Score for ZIP 98092

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	$1,900
1 Bedroom	$2,010
2 Bedrooms	$2,370
3 Bedrooms	$3,120
4 Bedrooms	$3,680
5 Bedrooms	$4,269
6 Bedrooms	$4,781
7 Bedrooms	$5,163
8 Bedrooms	$5,421

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	$2,010	$311,563	0.65%	D
2BR	$2,370	$384,490	0.62%	D
3BR	$3,120	$616,206	0.51%	F
4BR	$3,680	$724,392	0.51%	F
5BR	$4,269	$808,710	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98092, King County, WA #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98092 is set by HUD for the year 2026. The FMRs for various bedroom types are as follows: - 0BR: $1840 - 1BR: $1930 - 2BR: $2280 - 3BR: $3010 - 4BR: $3510 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $383,003, which translates to a monthly rental cost of approximately $1,600 based on typical mortgage payments. This is still far above the FMR of $2280 for a 2BR unit. Given the high actual rental costs, voucher holders face significant constraints. They must find units that do not exceed the FMR, which is challenging given the local market conditions. For example, a 2BR unit priced at $2280 would only account for about 22.4% of the median household income ($122,300), indicating that many residents could afford higher rents without assistance. #### Affordability & Renter Profile ZIP code 98092 has a population of 50,224, with 25.7% of the households being renters. The occupancy rate is quite high at 96.4%, suggesting a tight rental market. With a median household income of $122,300, the majority of residents are likely middle to upper-middle class individuals who can afford higher rents. However, the 25.7% of renters might include a mix of lower-income families, young professionals, and students who rely on affordable housing options. Given the high price-to-FMR ratio of 14.0x, it’s clear that the market is very expensive relative to the FMR. This means that voucher holders have limited options and may struggle to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 98092 presents both opportunities and challenges. The FMRs provide a baseline for what voucher holders can afford, but the actual rents are much higher. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields and expenses. Assuming a typical rental yield of 5% and average maintenance and management costs of 30% of the rental income, let’s calculate the potential cash flow for a 2BR unit: - Monthly rental income at FMR: $2280 - Annual rental income at FMR: $2280 * 12 = $27,360 - Maintenance and management costs: 30% of $27,360 = $8,208 - Net annual income: $27,360 - $8,208 = $19,152 If the purchase price of a 2BR unit is around $383,003, the cash-on-cash return would be: - Cash-on-cash return: ($19,152 / $383,003) * 100 ≈ 5% This suggests that while the property may generate positive cash flow, the returns are modest compared to other investment-grade properties. Additionally, the high price-to-FMR ratio indicates that there is a significant gap between what voucher holders can afford and the actual market rates, which could limit the pool of potential tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR for larger units, investors should focus on smaller units such as 0BR or 1BR apartments. These units are more likely to be rented out by voucher holders since they are closer to the FMR. For example, a 1BR unit at $1930 per month would be more feasible for a voucher holder compared to a 2BR unit at $2280. 2. **Consider Multi-Family Properties**: Multi-family properties often offer better economies of scale and can accommodate a mix of voucher and non-voucher tenants. A multi-family property with a combination of 0BR, 1BR, and 2BR units could attract a broader range of renters and potentially achieve a higher occupancy rate. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help streamline the process of renting to voucher holders. This includes understanding the local demand for affordable housing and any specific requirements or incentives offered by the government. #### Bottom Line For Section 8-focused investors, ZIP code 98092 presents a challenging environment due to the high price-to-FMR ratio and limited number of units that fall within the FMR range. While there is potential for positive cash flow, the returns are relatively low compared to other investment-grade properties. Therefore, the recommendation is to **Skip** this ZIP code unless you can secure properties at a discount or focus on smaller units that are more likely to be rented by voucher holders.

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.