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 | $2,250 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,570 |
| 4 Bedrooms | $4,250 |
| 5 Bedrooms | $4,930 |
| 6 Bedrooms | $5,522 |
| 7 Bedrooms | $5,964 |
| 8 Bedrooms | $6,262 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,340 | $799,779 | 0.29% | F |
| 2BR | $2,740 | $752,277 | 0.36% | F |
| 3BR | $3,570 | $997,589 | 0.36% | F |
| 4BR | $4,250 | $1,317,477 | 0.32% | F |
| 5BR | $4,930 | $1,612,429 | 0.31% | F |
U.S. Census Bureau data (2024)
ZIP code 98177, located in Shoreline, WA, falls within the larger Seattle-Bellevue, WA HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 98177 in fiscal year 2024 is set at $2,690, while the market rent stands at $2,986. The median home value in this area is $1,151,716, and the renter share is 13.0%. To understand how 98177 positions itself within the broader metro, we must compare these figures to typical ZIP codes in the Seattle-Bellevue area.
The FMR of $2,690 is slightly above the average for the Seattle-Bellevue metro, indicating that it is not among the lowest cost areas for housing assistance. However, the market rent at $2,986 is relatively close to the FMR, suggesting that the rental market is not significantly overpriced compared to the HUD's guidelines. This alignment between FMR and market rent could make 98177 an attractive option for landlords participating in the Section 8 program, as they can expect to receive fair compensation without the need for significant price adjustments.
With a median home value of $1,151,716, ZIP 98177 is likely to be considered a mid-tier neighborhood within the Seattle-Bellevue metro. Home values in the metro can range widely, from lower-cost areas to extremely high-value neighborhoods, and $1,151,716 places 98177 squarely in the middle. This suggests that property owners in this ZIP might find their investments moderately valued compared to other parts of the metro.
The renter share of 13.0% is notably lower than what might be expected in more densely populated urban centers within the Seattle-Bellevue area. Typically, higher renter shares indicate a greater demand for rental properties and potentially more opportunities for Section 8 participation. However, given the lower renter share, landlords in 98177 should be prepared for a more balanced mix of renters and homeowners.
While 98177 does not exhibit the characteristics of a typical Section 8 sweet spot—such as a high renter share coupled with below-average home values—it still presents a viable opportunity for landlords. Its FMR and market rent suggest a moderate pricing environment, making it neither a premium sub-market nor a value pocket but a stable, mid-tier neighborhood within the metro.
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.