Section 8 Fair Market Rent (FMR) for ZIP 98204 - 2027

Investment Score for ZIP 98204

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,840
1 Bedroom	$1,920
2 Bedrooms	$2,240
3 Bedrooms	$2,920
4 Bedrooms	$3,470
5 Bedrooms	$4,025
6 Bedrooms	$4,508
7 Bedrooms	$4,869
8 Bedrooms	$5,112

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,920	$235,762	0.81%	C
2BR	$2,240	$343,492	0.65%	D
3BR	$2,920	$591,673	0.49%	F
4BR	$3,470	$693,833	0.5%	F
5BR	$4,025	$752,632	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98204 (Everett, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 98204 is set by HUD for 2026 as follows: - 0BR: $1800 - 1BR: $1850 - 2BR: $2160 (which is 37.8% of the median household income of $68,513) - 3BR: $2850 - 4BR: $3320 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that these figures do not necessarily reflect the actual rental prices in the market. According to Zillow, the median price for a 2BR property in 98204 is $348,005. The price-to-FMR ratio for a 2BR unit is 13.4x, which means that the median home value is significantly higher than the FMR for renting a similar-sized unit. This suggests that many properties in Everett are priced well above what a Section 8 voucher holder could afford, creating a constraint for those relying on vouchers to find suitable housing. #### Affordability & Renter Profile ZIP code 98204 has a high occupancy rate of 95.1%, indicating that the rental market is tight and there is strong demand for housing. With 66.4% of the population being renters, the area has a significant number of individuals who rely on rental housing. Given the median household income of $68,513, the affordability of housing becomes a critical issue. For instance, the FMR for a 2BR unit is $2160, which is already a substantial portion of the median income. This makes it challenging for low-income households to find affordable housing without assistance. The tight market conditions mean that landlords have considerable leverage in setting rental prices. Many units are likely to be priced above the FMR, making it difficult for voucher holders to find properties that accept their vouchers. This situation can lead to a mismatch between the supply of affordable housing and the demand from low-income renters. #### Investor Angle From an investor’s perspective, the key question is whether the rental market in ZIP code 98204 is cash-flow positive at the FMR levels. Given the high occupancy rate and the significant percentage of the population that are renters, there is a strong demand for rental properties. However, the high price-to-FMR ratio indicates that the median home values are much higher than the FMRs, suggesting that the majority of rental properties are priced above the FMR. To determine if the market is cash-flow positive at FMR, we need to consider the average rental rates. If the average rental rates are close to or below the FMR, then investors can expect positive cash flow. However, if the average rental rates are significantly above the FMR, then investors may struggle to find tenants willing to pay the lower FMR rates. Given the data, it appears that the average rental rates are likely to be higher than the FMR due to the tight market conditions and the high median home values. Therefore, while there is strong demand, the cash flow for investors may be negative if they are pricing their units at or near the FMR. This makes the investment grade for Section 8-focused investors moderate to low, as the potential for positive cash flow is limited. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should focus on acquiring properties that are priced below the FMR to ensure positive cash flow. For example, a 2BR unit priced at $2160 or less would be more attractive to voucher holders and could provide better returns. 2. **Consider Renovation Projects**: Given the high median home values, there may be opportunities to acquire older properties at lower prices and renovate them to meet modern standards. This could potentially increase the attractiveness of the property to voucher holders while keeping costs below the FMR. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help landlords understand the needs of voucher holders and potentially secure more consistent tenancy. This can mitigate some of the risks associated with the tight market and high median home values. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 98204 is to **Skip**. The high price-to-FMR ratio and the tight market conditions suggest that finding properties that are both affordable and profitable will be challenging. While there is a significant number of renters, the majority of the rental stock is likely priced above the FMR, making it difficult for voucher holders to find suitable housing. Therefore, unless investors can find properties priced significantly below the FMR, the market in 98204 is not favorable for Section 8 investments.

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.