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 | $2,490 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,040 |
| 3 Bedrooms | $3,960 |
| 4 Bedrooms | $4,720 |
| 5 Bedrooms | $5,475 |
| 6 Bedrooms | $6,132 |
| 7 Bedrooms | $6,623 |
| 8 Bedrooms | $6,954 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,600 | $424,417 | 0.61% | D |
| 2BR | $3,040 | $730,126 | 0.42% | F |
| 3BR | $3,960 | $901,282 | 0.44% | F |
| 4BR | $4,720 | $1,224,501 | 0.39% | F |
| 5BR | $5,475 | $1,441,860 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 98107 in Seattle, WA, reveals a strong opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $3000 for a standard unit. In comparison, the Zillow Observed Rental Index (ZORI) for the same area stands at $2,131, indicating that properties renting at the HUD FMR level will generate significant positive cash flow.
To further understand the dynamics of the rental market, consider the median home value in ZIP 98107, which is $870,998. This places the rent-to-price ratio at approximately 2.4%, suggesting that rental income is a small fraction of the overall property value. However, given the substantial gap between the HUD FMR and the market rent, investors can expect to see solid cash flow from voucher tenants.
The market conditions also support the attractiveness of rental investments over buying. With a median Days on Market (DOM) of just 18 days, it's clear that rental properties are in high demand. Additionally, the low price-cut share of 0.2% indicates that landlords do not need to reduce their asking rents to attract tenants, reinforcing the stability and profitability of rental investments.
In conclusion, the strongest investor angle in ZIP 98107 is cash flow, due to the favorable difference between HUD FMR and market rent levels. This allows investors to benefit from higher rental incomes without compromising on occupancy rates or requiring premium units to achieve positive cash flow.
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.