Location: Bellingham, WA | Metro: Bellingham, WA MSA
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 | $1,430 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,470 | $286,467 | 0.51% | F |
| 2BR | $1,800 | $405,889 | 0.44% | F |
| 3BR | $2,450 | $581,961 | 0.42% | F |
| 4BR | $3,010 | $696,142 | 0.43% | F |
| 5BR | $3,492 | $798,371 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 98230 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,540 for the fiscal year 2024 is significantly lower than the market rent, measured by Zillow's Observed Rental Index (ZORI), which stands at $2,448. This disparity indicates that properties receiving government assistance through Section 8 may not be able to command market rates.
Acquisition in ZIP 98230 is moderately affordable. With a median home value of $536,597, the area is within reach for many investors. The days on market (DOM) average at 54 days suggests that homes are selling relatively quickly, which can be advantageous for those looking to acquire properties swiftly. However, the low 0.2% price-cut share implies that sellers are generally not willing to negotiate aggressively on their asking prices, which could limit potential profit margins for investors.
Tenant demand in ZIP 98230 is stable but not exceptionally high. The total population of 18,744 residents includes a 20.4% renter share, indicating a modest pool of potential tenants. While this suggests that there will be some demand, it also means that competition among landlords could be significant, especially given the higher market rents.
In conclusion, ZIP 98230 presents a mixed picture for Section 8 real estate investment. The rent math is unfavorable due to the substantial gap between FMR and market rents. Acquisition is affordable, though with limited room for negotiation. Tenant demand is present but not robust, which could lead to competitive pressures. Overall, the area may not be the most attractive for investors seeking to maximize rental income or quickly sell acquired properties.
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.