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 | $1,930 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,650 |
| 5 Bedrooms | $4,234 |
| 6 Bedrooms | $4,742 |
| 7 Bedrooms | $5,121 |
| 8 Bedrooms | $5,377 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,010 | $417,331 | 0.48% | F |
| 2BR | $2,350 | $651,890 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 98104, located in the Seattle-Bellevue metropolitan area, offers a strategic fit within a Section 8 portfolio, particularly as a cash-flow anchor. This designation is based on the Federal Market Rent (FMR) set at $2320 for fiscal year 2024, which stands significantly above the market rent of $2,084. This $236 spread ensures that landlords can maintain steady and reliable cash flow, as Section 8 tenants receive vouchers that cover a substantial portion of the rental cost.
The median home value in ZIP 98104 is $549,371, indicating a relatively high-cost area where maintaining property values and occupancy rates is crucial. The FMR provides a buffer against market fluctuations, ensuring that landlords can meet their financial obligations without relying solely on market rents that might be lower due to economic conditions or competition.
While the appreciation potential in ZIP 98104 is limited, with only a 0.2% price-cut share and an N/A-day Days on Market (DOM), the primary benefit lies in the consistent income stream. The high renter share of 91.8% and median income of $61,460 suggest a strong demand for rental properties, but also highlight the necessity for affordable housing options. Section 8 properties fill this need effectively, providing a stable tenant base that is less likely to vacate due to financial pressures.
In conclusion, ZIP 98104 is best suited as a cash-flow anchor within a Section 8 portfolio. Its high FMR compared to market rent ensures landlords can rely on a predictable income, making it an ideal choice for those looking to stabilize their investment returns amidst fluctuating market conditions.
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.