Location: Mount Vernon-Anacortes, WA | Metro: Mount Vernon-Anacortes, 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 | $1,350 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,490 | $721,124 | 0.21% | F |
| 2BR | $1,950 | $795,018 | 0.25% | F |
| 3BR | $2,700 | $914,425 | 0.3% | F |
| 4BR | $2,940 | $1,014,928 | 0.29% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98232 in Bow, Washington, reveals a unique balance between yield potential and market stability. With a Fair Market Rent (FMR) of $2,320 for fiscal year 2024, this area offers a notable opportunity for rental income compared to the median market rent of $1,640. The discrepancy between the FMR and the market rent suggests that there is room for landlords to increase rents, potentially leading to higher yields.
However, the stability of this market is less clear. Only 10.0% of residents are renters, which is a relatively low percentage. This indicates that the majority of the population owns their homes, suggesting a smaller pool of potential tenants. Additionally, the median household income of $104,559 is quite high, which could mean that tenants may be more selective about where they live, potentially affecting vacancy rates and tenant retention.
The average days on market (DOM) for rentals is not available, but this metric would typically help gauge how quickly properties can be leased. Given the limited rental market share, it is likely that finding tenants could take longer than in areas with a higher percentage of renters.
In terms of property values, the median home value of $854,794 is indicative of a high-end real estate market. This figure places significant pressure on the purchase cost for any investment property, making it essential for landlords to ensure that rental yields are sufficient to cover mortgage payments, maintenance, and other associated costs.
Based on these figures, ZIP 98232 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents an intermediate scenario. While the potential for higher rental income exists due to the favorable FMR, the low percentage of renters and high property values suggest that this area requires careful consideration. Landlords should expect a moderate level of yield and anticipate challenges in maintaining stable cash flow due to the limited rental market and high competition for tenants.
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.