Section 8 Fair Market Rent (FMR) for ZIP 98115 - 2027

Investment Score for ZIP 98115

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	$2,420
1 Bedroom	$2,520
2 Bedrooms	$2,950
3 Bedrooms	$3,850
4 Bedrooms	$4,580
5 Bedrooms	$5,313
6 Bedrooms	$5,951
7 Bedrooms	$6,427
8 Bedrooms	$6,748

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	$2,520	$381,776	0.66%	D
2BR	$2,950	$753,221	0.39%	F
3BR	$3,850	$1,038,738	0.37%	F
4BR	$4,580	$1,302,664	0.35%	F
5BR	$5,313	$1,551,300	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 98115 (Seattle, WA) ZIP code 98115 is located in Seattle, WA, within King County. The area has a population of 54,349, with a median household income of $156,142, indicating a relatively affluent neighborhood. Approximately 40.3% of the residents are renters, and the occupancy rate stands at 93.6%, suggesting a robust demand for housing in the area. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP 98115, as of 2026, is set at the following rates: - 0BR: $2400 - 1BR: $2480 - 2BR: $2890 (which represents 22.2% of the median income) - 3BR: $3780 - 4BR: $4450 These FMRs are designed to reflect the average rent levels for units in the area. However, the actual rents in the market can be significantly higher. For instance, the Zillow median price for a 2BR unit is $768,816, which translates to a monthly rental cost of approximately $3,203 based on a 4% annual rental yield. This means that the actual market rent for a 2BR unit is about 22.2 times the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The constraints for voucher holders are clear: they must find units where the rent does not exceed the FMR. Given the high market rents, many landlords may not accept vouchers due to the lower rent ceilings imposed by the government. This creates a significant barrier for low-income renters who rely on Section 8 vouchers to afford housing in this expensive market. ### Affordability & Renter Profile The renter profile in ZIP 98115 is likely to include a mix of young professionals, families, and individuals who can afford the high rents. With a median household income of $156,142, many residents have the financial means to pay market rents. However, the 22.2x price-to-FMR ratio indicates that the market is extremely tight and not very affordable for those relying solely on Section 8 vouchers. Given the high median income and the fact that 40.3% of the population are renters, there is a strong demand for rental properties. The occupancy rate of 93.6% further supports this conclusion. However, the affordability gap is stark, especially for low-income renters who would need to find units priced below the FMR. This suggests that the market is highly competitive and not oversupplied. ### Investor Angle From an investor's perspective, the ZIP code 98115 presents both opportunities and challenges. The Zillow median price for a 2BR unit is $768,816, which translates to a monthly rental cost of around $3,203. At the same time, the FMR for a 2BR unit is $2890. This means that if an investor were to purchase a property at the median price and rent it out at the FMR, they would face a shortfall of $313 per month. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider other factors such as property taxes, insurance, maintenance costs, and mortgage payments. Assuming a 4% annual rental yield, the monthly rental income would be $3,203. If we subtract the FMR of $2890, the remaining amount is $313. Property taxes in King County average around 1.08% of the property value, so for a $768,816 property, the annual tax would be approximately $8,297, or $691 per month. Insurance costs vary but could be around $100-$200 per month. Maintenance and vacancy costs might add another $100-$200 per month. Thus, the total expenses would likely exceed the FMR, making the investment cash-flow negative unless the investor can secure a tenant willing to pay above the FMR. The investment grade for this ZIP code is moderate to low for Section 8-focused investors due to the high market rents and the likelihood of facing shortfalls when renting at FMR. ### Specific Actionable Insights 1. **Focus on Larger Units**: Investors should focus on larger units like 3BR and 4BR apartments, where the FMR is higher ($3780 and $4450 respectively). These units may be more attractive to landlords because the rent ceiling is closer to market rates, potentially reducing the shortfall. 2. **Consider Lower Priced Properties**: Investors should look for properties that are priced below the median. For example, a 2BR property priced at $600,000 would generate a monthly rental income of around $2,400, which is close to the FMR of $2890. This could make the investment more feasible and cash-flow positive. 3. **Explore Mixed-Income Developments**: Developers and investors might consider mixed-income developments where some units are rented at market rates and others are rented to Section 8 voucher holders. This approach can balance the financial impact of lower rents on voucher units with higher rents on market-rate units. ### Bottom Line For Section 8-focused investors, ZIP code 98115 presents a challenging environment due to the high market rents and the significant gap between FMR and actual rents. The recommendation is to **Skip** this ZIP code unless you can find properties priced significantly below the median or focus on larger units where the FMR is closer to market rates. Given the tight market and high competition, it is unlikely to be a profitable area for investors primarily interested in Section 8 vouchers.

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.