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 | $1,860 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $370,700 | 0.52% | F |
| 2BR | $2,270 | $627,408 | 0.36% | F |
| 3BR | $2,960 | $790,555 | 0.37% | F |
| 4BR | $3,520 | $982,956 | 0.36% | F |
| 5BR | $4,083 | $1,118,263 | 0.37% | F |
U.S. Census Bureau data (2024)
2360 The Fair Market Rent (FMR) for ZIP 98126 in Seattle, WA, for fiscal year 2024 is set at $2360, providing a benchmark for rental pricing in the area. 2155 However, the actual market rent, known as the Zillow Observed Rent Index (ZORI), stands at $2,155, indicating a slight discrepancy between government estimates and real-world conditions. 774377 With a median home value of $774,377, it's clear that the neighborhood is quite expensive, reflecting a strong housing market. 394 In terms of occupancy, 39.4% of residents are renters, suggesting a significant demand for rental properties. 116466 The median income of $116,466 supports the high cost of living and indicates that residents have the financial means to afford higher rents. 7 The average days on market (DOM) for rental listings is 7, showing a brisk pace of leasing activity and underscoring the attractiveness of the area to potential tenants. 20 The low price-cut share of 0.2% further confirms that landlords can maintain their asking prices without needing to negotiate downwards. 2360 Given these figures, landlords and small-portfolio investors should consider the FMR as a guideline but rely on the market rent to set competitive rates. 774377 Additionally, the high median home value suggests that rental properties in this area will likely hold their value well over time. 394 With a substantial renter share, there is ongoing demand for rental units, making it a favorable market for investment. 2155 The market rent is below the FMR, which could present an opportunity for Section 8 tenants looking for affordable housing options. 2360 Therefore, properties priced at or slightly above the $2360 FMR may still attract Section 8 participants while offering a reasonable return on investment.
2360 Verdict: ZIP 98126 remains a viable market for Section 8 landlords, with strong fundamentals supporting both rental and property values.
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.