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 | $2,170 |
| 1 Bedroom | $2,260 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,440 |
| 4 Bedrooms | $4,100 |
| 5 Bedrooms | $4,756 |
| 6 Bedrooms | $5,327 |
| 7 Bedrooms | $5,753 |
| 8 Bedrooms | $6,041 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,260 | $485,591 | 0.47% | F |
| 2BR | $2,640 | $818,898 | 0.32% | F |
| 3BR | $3,440 | $1,309,749 | 0.26% | F |
| 4BR | $4,100 | $1,927,978 | 0.21% | F |
| 5BR | $4,756 | $2,639,197 | 0.18% | F |
U.S. Census Bureau data (2024)
2810 is the Fair Market Rent (FMR) for ZIP code 98112 in Seattle, WA, for fiscal year 2024. This figure represents the maximum amount landlords can charge tenants participating in the Section 8 program. In comparison, the market rent, measured by ZORI, stands at 2271, indicating that Section 8 participants can secure housing at a premium of approximately 23% over the average market rate. The median home value in this area is 1382019, which places it in a high-value bracket, making it an attractive location for real estate investments. With 39.8% of the population being renters, there's a significant demand for rental properties, including those supported by Section 8 vouchers. The median income of 171572 suggests that residents have the financial stability to support higher rents, but the disparity between market rates and FMRs highlights the importance of Section 8 subsidies for many. A 28-day DOM indicates that properties in this ZIP code typically stay on the market for about a month before they're rented, reflecting a balanced rental market. The price-cut share of 0.2% shows that very few landlords need to reduce their asking prices to attract tenants, further underscoring the strength of the rental market here.
Given these figures, investing in Section 8 properties in ZIP code 98112 appears to be a stable choice, with strong tenant demand and reasonable premiums over market rates. The low DOM and minimal price-cutting indicate that rental properties can be filled quickly without compromising on pricing. However, landlords should be prepared to adhere to HUD guidelines and undergo regular inspections. For small-portfolio investors, the combination of high median home values and a substantial renter share makes this ZIP code particularly appealing. Despite the slightly higher administrative burden, the financial benefits of renting to Section 8 participants in this area are clear.
1382019 median home value and 2810 FMR suggest a robust investment opportunity where landlords can leverage the local economy's strength while providing affordable housing options. 39.8% of the population being renters also points to a steady stream of potential tenants. The 28-day DOM and 0.2% price-cut share reinforce the idea that properties will be occupied promptly and at the desired rate.
In conclusion, for landlords and small-portfolio investors looking to enter the Section 8 market in Seattle, WA, ZIP code 98112 presents a favorable environment with solid returns and manageable risks. Invest here.
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.