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 | $2,850 |
| 1 Bedroom | $2,970 |
| 2 Bedrooms | $3,470 |
| 3 Bedrooms | $4,520 |
| 4 Bedrooms | $5,380 |
| 5 Bedrooms | $6,241 |
| 6 Bedrooms | $6,990 |
| 7 Bedrooms | $7,549 |
| 8 Bedrooms | $7,926 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,970 | $390,783 | 0.76% | D |
| 2BR | $3,470 | $675,458 | 0.51% | F |
| 3BR | $4,520 | $1,217,072 | 0.37% | F |
| 4BR | $5,380 | $1,765,378 | 0.3% | F |
| 5BR | $6,241 | $2,166,770 | 0.29% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 98109 in Seattle, WA, hinges on the interplay between rental yields and market stability. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $3,540, significantly above the market rent of $2,489. This disparity suggests a potential for higher rental yields compared to the average market conditions.
However, the median home value in ZIP 98109 stands at $758,196, indicating a high barrier to entry for property acquisition. Despite this, the strong rental demand—represented by a 78.9% proportion of residents who are renters—supports the viability of rental investments.
The area's median household income is $133,663, which is robust and can support the higher FMRs. This income level, combined with the high percentage of renters, points towards a relatively stable rental market. However, the lack of data on days on market (DOM) makes it challenging to fully assess the stability of the real estate transactions.
Given these figures, ZIP 98109 leans towards being a steady-cashflow zone. The high FMR relative to the market rent implies that properties participating in the Section 8 program can generate solid cash flows. Simultaneously, the high percentage of renters and substantial median income suggest that there is a consistent demand for rental housing, underpinning the stability of the investment.
While the high home values might limit the number of potential flips due to the significant capital required, the combination of high yields and strong rental demand makes it an attractive option for long-term rental investments rather than short-term speculative purchases.
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.