Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area
| 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 |
The analysis for ZIP code 98161 in Unknown, WA, reveals some limitations due to missing data points, particularly regarding the median home value and market rent. However, we can still derive a rough picture using the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $2700 annually for fiscal year 2024.
To calculate the implied gross yield based on the FMR, we need the median home value. Since this data is currently unavailable, we cannot provide an exact figure for the gross yield. However, if we hypothetically assume a median home value, the calculation would be straightforward. For example, if the median home value were $500,000, the implied gross yield would be approximately 0.54% ($2700 / $500,000).
In the absence of market rent data, it's challenging to compare the gross yields directly. Typically, market rents can vary significantly from FMRs, depending on local demand and economic conditions. Without this information, we cannot provide a precise comparison. However, it's worth noting that market rents often exceed FMRs, potentially leading to a higher gross yield for landlords who can charge above the subsidized rate.
The lack of data on renter density and days on market (DOM) further complicates the analysis. Renter density can affect the occupancy rates and, consequently, the overall profitability. Days on market can indicate how quickly units are filled, impacting cash flow and vacancy costs. These factors are crucial for understanding the potential risks and returns associated with investing in rental properties in ZIP 98161.
In conclusion, while the annualized FMR provides a baseline for Section 8 properties, the true gross yield will depend on the actual median home value and market rent conditions. Landlords and investors should seek additional local data to refine their investment decisions.
Data Sources: FMR data from HUD (2027).
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.