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 | $2,470 |
| 1 Bedroom | $2,570 |
| 2 Bedrooms | $3,010 |
| 3 Bedrooms | $3,920 |
| 4 Bedrooms | $4,670 |
| 5 Bedrooms | $5,417 |
| 6 Bedrooms | $6,067 |
| 7 Bedrooms | $6,552 |
| 8 Bedrooms | $6,880 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,570 | $344,911 | 0.75% | D |
| 2BR | $3,010 | $817,146 | 0.37% | F |
| 3BR | $3,920 | $1,187,529 | 0.33% | F |
| 4BR | $4,670 | $1,688,750 | 0.28% | F |
| 5BR | $5,417 | $2,162,918 | 0.25% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 98199 in Seattle, WA, hinges on analyzing its yield and stability metrics. On the yield axis, the Federal Market Rent (FMR) for fiscal year 2024 stands at $2,980, which is significantly higher than the market rent of $2,421. This indicates a strong potential for rental income above the typical market rate, suggesting a high-yield environment. Additionally, the median home value of $1,261,896 implies that there is substantial equity available in properties, further enhancing the yield potential through appreciation.
Moving to the stability axis, the area shows a mixed profile. With 36.8% of residents being renters, it has a moderate level of demand for rental housing. However, the 10-day days on market (DOM) suggests that homes are selling quickly, indicating a robust real estate market where properties can be easily flipped or re-rented. The average household income of $180,789 provides a solid financial foundation for tenants, reducing the risk of default and enhancing overall market stability.
Based on these figures, ZIP 98199 is best characterized as a high-yield market with moderate stability. The significant gap between FMR and market rent points towards opportunities for higher-than-average rental income, while the quick sales cycle and decent tenant income suggest a market that, though not entirely stable, offers reliable cash flow. Landlords and small-portfolio investors should consider the high property values when assessing their investment strategies, as they might necessitate larger initial investments but offer substantial long-term gains.
To summarize, the key figures driving this assessment are:
This analysis reveals a market that leans towards high-yield but maintains enough stability to support ongoing investment and rental operations. It is not purely a flip-style market due to the presence of a sizeable renting population and reasonable tenant income levels.
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.