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 | $2,860 |
| 1 Bedroom | $2,980 |
| 2 Bedrooms | $3,490 |
| 3 Bedrooms | $4,550 |
| 4 Bedrooms | $5,410 |
| 5 Bedrooms | $6,276 |
| 6 Bedrooms | $7,029 |
| 7 Bedrooms | $7,591 |
| 8 Bedrooms | $7,971 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,980 | $474,007 | 0.63% | D |
| 2BR | $3,490 | $869,635 | 0.4% | F |
| 3BR | $4,550 | $1,317,728 | 0.35% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 98101, located in the Seattle-Bellevue, WA HUD Metro FMR Area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $3590 for the fiscal year 2024 contrasts sharply with the actual market rent, which stands at $2,611 based on ZORI data. This discrepancy means that landlords relying solely on Section 8 vouchers will likely face a shortfall of nearly $1,000 per month.
Acquisition in this area is challenging due to the high median home value of $592,162. With no available data on days on market (DOM) and a negligible 0.1% price-cut share, it suggests that homes are selling quickly and at or near their asking price, making entry into the market costly and potentially unaffordable for many small-portfolio investors.
Tenant demand is robust in ZIP 98101, with a population of 17,153 and a significant 86.5% of residents being renters. This high percentage indicates a strong preference for renting over owning, creating a healthy pool of potential tenants.
Despite the strong tenant demand, ZIP 98101 presents a difficult investment scenario for landlords and small-portfolio investors. The disparity between the FMR and the actual market rent means that properties might struggle to attract Section 8 tenants without significant subsidies. Additionally, the high median home value coupled with quick sales and minimal price reductions makes property acquisition expensive and potentially risky. In summary, while there is ample tenant demand, the financial realities of rent and acquisition costs make this area less favorable 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.