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 | $2,040 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,490 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,860 |
| 5 Bedrooms | $4,478 |
| 6 Bedrooms | $5,015 |
| 7 Bedrooms | $5,416 |
| 8 Bedrooms | $5,687 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,130 | $463,663 | 0.46% | F |
| 2BR | $2,490 | $547,662 | 0.45% | F |
| 3BR | $3,250 | $666,866 | 0.49% | F |
| 4BR | $3,860 | $791,234 | 0.49% | F |
| 5BR | $4,478 | $922,357 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 98106 in Seattle, WA, stands as a market in constant motion, reflecting the vibrant and dynamic nature of the city's core. The Fair Market Rent (FMR) for the area, set at $2320 for fiscal year 2024, closely aligns with the Zillow Observed Rent Index (ZORI) of $2,208. This near parity between FMR and market rent suggests that the rental market is robust and competitive, indicative of strong demand.
A key metric in understanding the balance between supply and demand is the price-cut share, which currently sits at a minimal 0.2%. This figure implies that very few properties are being discounted to attract tenants, further supporting the notion that demand is keeping pace with or slightly exceeding supply. Additionally, the days on market (DOM) of just 7 days highlights how quickly units are filling, pointing towards a tight rental market where properties do not linger long before securing a tenant.
The median home value of $673,637 underscores the significant financial investment required to enter the homeownership market in this ZIP. This high median value could be driving potential buyers into the rental market, contributing to the observed rental dynamics.
With a 41.3% renter share, it becomes evident that a considerable portion of the population in 98106 relies on rental housing. This high percentage signals ongoing long-term housing pressure, as a substantial number of residents are unlikely to transition to homeownership due to the high cost of living and property values. Such a scenario typically leads to sustained demand for rental properties, making 98106 a stable and attractive market for landlords and small-portfolio investors.
The interplay between these metrics paints a picture of a market where demand is resilient and supply is tightly managed. Landlords can expect steady occupancy rates and competitive rents, as the high median home value and strong renter share indicate a persistent need for rental accommodations. For small-portfolio investors, this means that 98106 offers a reliable environment for generating rental income without the risk of prolonged vacancies or significant price fluctuations.
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.