Section 8 Fair Market Rent (FMR) for ZIP 98110 - 2027

Location: Seattle-Bellevue, WA | Metro: Bremerton-Silverdale-Port Orchard, WA MSA

Investment Score for ZIP 98110

F
Monthly Rent (2BR)
$2,380
Median Price (2BR)
$849,384
1% Rule
0.28%
Annual Yield
3.36%

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$1,660
1 Bedroom$1,860
2 Bedrooms$2,380
3 Bedrooms$3,190
4 Bedrooms$3,390
5 Bedrooms$3,932
6 Bedrooms$4,404
7 Bedrooms$4,756
8 Bedrooms$4,994

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 $1,860 $602,284 0.31% F
2BR $2,380 $849,384 0.28% F
3BR $3,190 $1,220,024 0.26% F
4BR $3,390 $1,598,808 0.21% F
5BR $3,932 $1,857,588 0.21% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,631
Median Household Income
$172,188
Housing Units
10,900
Renter Percentage
18.6%
Occupancy Rate
90.7%
Renter Occupied
1,842

The ZIP code 98110, located on Bainbridge Island, WA, has a population of 24,631 residents, with 18.6% being renters. This indicates that the area is primarily dominated by homeowners rather than renters. The median household income stands at a robust $172,188, which is significantly higher than the average income across the United States.

The market rent for the area is reported at $2,696 per month. To put this into perspective, the typical rent consumes approximately 15.6% of the local median income. This percentage is calculated by dividing the monthly rent by the annual median income and multiplying by 12. In comparison, the Fair Market Rent (FMR) for the area, set at $2,580 for FY 2024, is slightly lower than the actual market rent, suggesting that rents in 98110 are above the FMR threshold.

The demand for Section 8 vouchers in this ZIP code is likely to be less intense due to the relatively low proportion of renters and the high median income. Landlords in 98110 can expect tenants who are financially stable but may still seek affordable housing options. These tenants will typically have an income below 50% of the Area Median Income (AMI), which is $86,090 for Bainbridge Island. They may rely on rental assistance programs such as Section 8 to afford living in the area given the high cost of housing.

In summary, while 98110 is not a renter-heavy ZIP code, it does offer opportunities for landlords willing to accept Section 8 tenants. However, they should be prepared for a tenant pool that requires financial assistance to cover the cost of living in a high-income area with correspondingly high market rents.

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.