Location: Seattle-Bellevue, 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 | $1,620 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $379,699 | 0.51% | F |
| 3BR | $2,570 | $470,088 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 98241 in Washington State reveals a unique balance between yield and stability that could be attractive to both landlords and small-portfolio investors. On the yield axis, the Fair Market Rent (FMR) for 2024 stands at $2210, which is notably higher than the market rent of $926. This suggests a significant opportunity for rental income, especially when leveraging government subsidies through programs such as Section 8. However, the median home value of $434,284 indicates that purchasing properties in this area will require a substantial investment.
Moving to the stability axis, the data shows that 26.2% of residents are renters, which provides a solid foundation for consistent cash flow. The absence of data regarding days on market (DOM) suggests that the market for rentals might be steady without frequent fluctuations. Additionally, the average household income of $73,185 supports the idea that tenants can afford the higher rents associated with FMR.
To classify this ZIP code, it is important to consider the interplay between these factors. With an FMR that is more than double the market rent, there is a strong potential for high yields. Yet, the relatively low percentage of renters and the high median home value indicate a level of stability that prevents this from being purely a high-yield, low-stability market. Instead, ZIP 98241 leans towards being a steady-cashflow zone, where the combination of decent rental occupancy rates and the ability to command higher rents due to the Section 8 program creates a reliable income stream.
Investors should note that while the high FMR offers lucrative returns, the significant upfront costs associated with property acquisition mean that the capital required for entry into this market is considerable. The average income figure further bolsters the case for stability, as it implies a lower risk of tenant default on rent payments.
In summary, ZIP 98241 presents itself as a moderate to high-yield market with above-average stability. This makes it suitable for investors seeking a balance between profit potential and financial security. The key figures driving this classification are the $2210 FMR compared to the $926 market rent, and the $73,185 average income supporting the 26.2% rental rate.
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.