Section 8 Fair Market Rent (FMR) for ZIP 98121 - 2027

Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area

Investment Score for ZIP 98121

Monthly Rent (2BR)

$3,630

Median Price (2BR)

$837,948

1% Rule

0.43%

Annual Yield

5.2%

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	$2,980
1 Bedroom	$3,100
2 Bedrooms	$3,630
3 Bedrooms	$4,730
4 Bedrooms	$5,630
5 Bedrooms	$6,531
6 Bedrooms	$7,315
7 Bedrooms	$7,900
8 Bedrooms	$8,295

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	$3,100	$456,409	0.68%	D
2BR	$3,630	$837,948	0.43%	F
3BR	$4,730	$1,546,546	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

21,166

Median Household Income

$152,019

Housing Units

16,684

Renter Percentage

77.4%

Occupancy Rate

85.6%

Renter Occupied

11,055

The ZIP code 98121, located in Seattle, WA, is a vibrant urban area that offers a mix of residential and commercial spaces. Known for its proximity to downtown Seattle and diverse amenities, it attracts a wide range of renters and homeowners alike. This market analysis will provide insights into key metrics that are crucial for landlords and small-portfolio investors considering investment opportunities in this region.

The Fair Market Rent (FMR) for ZIP 98121 in fiscal year 2024 is set at $3970, indicating the government's benchmark for rental pricing in the area.
The actual market rent, as measured by Zillow's ZORI index, stands at $2,735, reflecting the competitive nature of the local housing market.
The median home value in 98121 is $566,428, showcasing the area's relatively high property values compared to the national average.
Renters make up 77.4% of the population, highlighting a strong demand for rental properties in the area.
The median income for residents is $152,019, suggesting a robust economic base that supports higher rental rates and property values.

Investors looking to enter the 98121 market should note the significant gap between the ZORI and FMR figures, which could indicate either a misalignment in the government's assessment or a highly competitive private rental sector. The high median income and substantial renter share underscore the potential profitability of rental investments, while the median home value signals a premium market where property appreciation can be expected. These factors collectively present a favorable environment for landlords and small-portfolio investors seeking stable returns and growth opportunities.

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.