Section 8 Fair Market Rent (FMR) for ZIP 98239 - 2027

Location: Island County, WA | Metro: Island County, WA

Investment Score for ZIP 98239

F
Monthly Rent (2BR)
$1,650
Median Price (2BR)
$597,738
1% Rule
0.28%
Annual Yield
3.31%

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$1,150
1 Bedroom$1,320
2 Bedrooms$1,650
3 Bedrooms$2,260
4 Bedrooms$2,700
5 Bedrooms$3,132
6 Bedrooms$3,508
7 Bedrooms$3,789
8 Bedrooms$3,978

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 $1,320 $568,836 0.23% F
2BR $1,650 $597,738 0.28% F
3BR $2,260 $688,859 0.33% F
4BR $2,700 $840,390 0.32% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
7,656
Median Household Income
$92,125
Housing Units
4,136
Renter Percentage
14.2%
Occupancy Rate
83.5%
Renter Occupied
491

The potential risks for a Section 8 landlord in ZIP code 98239, located in Coupeville, WA, include significant tenant turnover due to the disparity between the market rent of $2,283 and the Fair Market Rent (FMR) of $1,450 for fiscal year 2026. This difference can lead to frequent changes in occupancy, which may disrupt property management and increase administrative costs.

Vacancy exposure is another concern. With the days on market (DOM) being listed as N/A, it's unclear how quickly properties might be filled. This uncertainty can result in periods where the landlord does not receive rental income, potentially leading to financial strain.

The deferred maintenance exposure is also notable. The typical home value in this area is $634,319, while the median income stands at $92,125. These figures suggest that tenants may have limited resources for maintaining the property, increasing the likelihood that landlords will need to cover unexpected repair and maintenance costs.

Despite these challenges, there are mitigating factors. The renter share in the area is 14.2%, indicating a relatively high concentration of renters. High renter density often translates into higher demand for housing vouchers, which can provide a steady stream of tenants for landlords willing to participate in the Section 8 program.

In conclusion, the risk for a first-time Section 8 landlord in ZIP code 98239 is moderate.

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.