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 | $2,130 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $4,030 |
| 5 Bedrooms | $4,675 |
| 6 Bedrooms | $5,236 |
| 7 Bedrooms | $5,655 |
| 8 Bedrooms | $5,938 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,220 | $404,444 | 0.55% | F |
| 2BR | $2,600 | $689,017 | 0.38% | F |
| 3BR | $3,390 | $939,233 | 0.36% | F |
| 4BR | $4,030 | $1,218,844 | 0.33% | F |
| 5BR | $4,675 | $1,471,664 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 98136 in Seattle, WA, falls within the Seattle-Bellevue, WA HUD Metro FMR Area. For fiscal year 2024, the HUD Fair Market Rent (FMR) for this area is set at $2720. This figure represents the maximum amount that landlords can charge for a unit under the Section 8 Housing Choice Voucher program.
In contrast, the market rent for the same area, as measured by Zillow's Observed Rent Index (ZORI), stands at $2,218. This indicates that voucher tenants would generally cashflow positively at the HUD FMR, as the subsidy covers more than the typical market rent. Landlords can expect a steady income stream without the risk of vacancy due to the inability of tenants to afford the rent.
The median home value in ZIP 98136 is $955,619. Using this, we can derive a rent-to-price ratio, which is an important metric for understanding the relative affordability of renting versus buying. The ratio here is approximately 0.23%, calculated by dividing the average monthly rent ($2,218) by the median home value ($955,619) and multiplying by 100. This suggests that renting is significantly cheaper compared to buying, making it a preferred option for many residents and thus maintaining strong demand for rental properties.
Regarding the days on market (DOM) and price cut percentages, both metrics are noted as N/A for the area. However, given the robust demand for rentals indicated by the low market rent relative to home values, these factors are less critical. The primary concern remains the ability to attract and retain tenants, which is facilitated by the generous Section 8 subsidies.
The strongest investor angle in ZIP 98136 is cashflow. With the HUD FMR exceeding market rents, landlords can ensure consistent and reliable income from their properties. Additionally, the low rent-to-price ratio supports the long-term stability of the rental market, providing a solid foundation for investment returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.