Section 8 Fair Market Rent (FMR) for ZIP 98105 - 2027

Investment Score for ZIP 98105

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	$2,300
1 Bedroom	$2,390
2 Bedrooms	$2,800
3 Bedrooms	$3,650
4 Bedrooms	$4,340
5 Bedrooms	$5,034
6 Bedrooms	$5,638
7 Bedrooms	$6,089
8 Bedrooms	$6,393

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	$2,390	$379,466	0.63%	D
2BR	$2,800	$774,872	0.36%	F
3BR	$3,650	$1,103,826	0.33%	F
4BR	$4,340	$1,596,847	0.27%	F
5BR	$5,034	$1,623,385	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98105 (Seattle, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98105 in Seattle, WA, is set by HUD for 2026 as follows: - 0BR: $2260 - 1BR: $2340 - 2BR: $2730 - 3BR: $3570 - 4BR: $4200 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit in this area. However, the actual rental market in 98105 is significantly higher. The Zillow median price for a 2BR unit is $789,010, which translates into a monthly mortgage payment of approximately $3,287 (assuming a 4.5% interest rate and 20% down payment). This is already above the 2BR FMR of $2730, indicating that voucher holders face significant challenges in finding affordable housing. The price-to-FMR ratio for a 2BR unit is 24.1x, meaning that the market rent is about 24 times the FMR. This high ratio suggests that landlords who accept Section 8 vouchers will likely be operating at a loss unless they can secure additional subsidies or have units that are below average in quality. #### Affordability & Renter Profile ZIP code 98105 has a population of 49,767, with 68.6% of residents being renters. This indicates a strong demand for rental properties, making it a tight market. The occupancy rate of 88.3% further supports this conclusion, as it shows that most available units are occupied. Given the median household income of $74,349, the 2BR FMR of $2730 represents 44.1% of the median income. This means that even if a household earns the median income, they would still find it challenging to afford a 2BR unit without assistance. The high percentage of renters and the tight market suggest that there is a significant need for affordable housing options. #### Investor Angle For investors looking to enter the 98105 market with a focus on Section 8 vouchers, the financial dynamics are critical. Based on the FMRs, a 2BR unit should ideally rent for $2730 per month. However, the actual market rent is much higher, with the Zillow median price translating to a monthly mortgage payment of $3,287. This implies that landlords accepting Section 8 vouchers will likely need to rely on other sources of income or subsidies to remain profitable. The investment grade for this ZIP code is low due to the significant gap between FMR and market rent. Investors should be prepared for lower cash flow and consider the long-term stability of Section 8 programs before committing to this market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR and 1BR might be more financially viable for Section 8 voucher holders. These units typically have lower market rents, making them more likely to align with the FMR. For example, a 1BR unit renting for $2340 is closer to the market rent of $2730 for a 2BR unit. 2. **Seek Additional Subsidies**: To make up for the shortfall between FMR and market rent, investors should explore additional subsidies or partnerships with local government agencies. This could include state or city-level housing assistance programs that provide supplementary funding to landlords who accept Section 8 vouchers. 3. **Consider Quality Improvements**: Landlords who can offer units that are slightly below average in quality might be able to charge closer to the FMR. Investing in minor renovations or maintenance improvements could help attract voucher holders while keeping costs manageable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 98105 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow without significant additional subsidies or a willingness to operate at a loss. While there is a clear need for affordable housing, the financial constraints and low investment grade indicate that this market may not be suitable for those primarily interested in generating rental income through Section 8 vouchers. --- This analysis provides a detailed look at the rental market dynamics in ZIP code 98105, focusing on the challenges faced by Section 8 voucher holders and potential opportunities for investors. The high cost of living and the tight rental market create a complex environment where affordability is a major concern.

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.