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 | $413,731 | 0.55% | F |
| 2BR | $2,640 | $620,027 | 0.43% | F |
| 3BR | $3,440 | $795,935 | 0.43% | F |
| 4BR | $4,100 | $1,043,505 | 0.39% | F |
| 5BR | $4,756 | $1,280,584 | 0.37% | F |
U.S. Census Bureau data (2024)
In ZIP code 98144, located in Seattle, WA, the median fair market rent (FMR) for 2024 is set at $2460. This figure raises immediate questions for landlords and small-portfolio investors regarding the financial viability of renting properties in this area.
Objection 1: Will FMR of $2460 cover the mortgage on a $798,425 home?
The answer is nuanced. According to recent data, the average monthly mortgage payment for a home priced at $798,425, assuming a 20% down payment and a 30-year fixed-rate mortgage at an interest rate of 5%, would be approximately $3,500. At first glance, the FMR of $2460 does not seem sufficient to cover such a mortgage. However, it's important to note that FMR is designed to reflect the typical rental cost for a standard two-bedroom apartment, not necessarily the mortgage cost of a house. For a single-family home, the actual rent charged can exceed the FMR, especially if the property has unique features or is in high demand.
Objection 2: Is there enough renter demand at 54.5%?
The occupancy rate of 54.5% indicates that slightly over half of the rental units are occupied. This might appear low, but it's essential to understand the context. In competitive markets like Seattle, a lower occupancy rate can still signify robust demand due to the high cost of living and limited affordable housing options. Moreover, the vacancy rate, which complements the occupancy rate, is also crucial. If the vacancy rate is low, it suggests that despite the percentage, there is a steady demand for rentals. The data provided does not specify the vacancy rate, so further investigation into local rental trends would be advisable.
Objection 3: Will vouchers keep pace with $1,982 market rents?
The Housing Choice Voucher program aims to ensure that voucher holders can afford decent housing in safe environments. With market rents averaging $1,982, the question of whether vouchers will cover these costs is critical. The voucher amount varies based on income levels and family size, but generally, it covers a significant portion of the rent. While the data does not provide specific voucher amounts for 98144, historically, voucher payments have been adjusted annually to reflect changes in the market. It is reasonable to expect that they will continue to adjust, although the exact figure cannot be determined without additional data.
In conclusion, while the FMR of $2460 may not directly cover the mortgage on a $798,425 home, the potential for higher rental rates for single-family homes exists. The occupancy rate of 54.5% suggests a need for more detailed analysis of the vacancy rate to gauge true demand. Lastly, the Housing Choice Voucher program's adaptability to market conditions provides some assurance that it will remain relevant, though precise figures are not available in the provided data.
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.