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 | $1,880 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $390,874 | 0.5% | F |
| 2BR | $2,290 | $470,237 | 0.49% | F |
| 3BR | $2,990 | $579,163 | 0.52% | F |
| 4BR | $3,550 | $664,748 | 0.53% | F |
| 5BR | $4,118 | $745,285 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP 98168, located in Seatac, WA, within the Seattle-Bellevue, WA HUD Metro FMR Area, serves best as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 98168 in fiscal year 2024 is set at $2210, significantly higher than the market rent of $2020. This $190 positive spread ensures steady and reliable rental income, which is crucial for maintaining consistent cash flow.
The median home value in the area is $587,739, indicating that the housing market is relatively stable and expensive. However, the focus on Section 8 properties means that investors are less concerned with property appreciation and more with securing a predictable income stream. The high FMR compared to market rent provides a buffer against potential decreases in rental income, making it an ideal anchor for a diversified investment portfolio.
While ZIP 98168 does offer some opportunities for appreciation, with a 0.2% price-cut share and a 13-day days-on-market (DOM), these factors are not as compelling as the cash flow stability offered by the positive spread between FMR and market rent. Appreciation plays typically require a longer-term outlook and a willingness to accept more risk and volatility, neither of which aligns with the primary goal of a cash-flow anchor.
The diversifier aspect, with a 46.2% renter share and a median income of $88,083, also supports the idea of using ZIP 98168 as a cash-flow anchor. A moderate renter share indicates a balanced mix of renters and homeowners, reducing the risk of over-reliance on any single type of tenant. Additionally, the median income figure suggests that there is a solid economic base supporting the rental market, further ensuring the reliability of the income generated from Section 8 properties.
In conclusion, ZIP 98168 should be considered primarily as a cash-flow anchor due to the favorable spread between FMR and market rent, combined with a stable economic environment. This approach will provide landlords and small-portfolio investors with a dependable source of income, essential for managing overall portfolio performance.
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.