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 | $1,320 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $199,086 | 0.68% | D |
| 2BR | $1,620 | $435,961 | 0.37% | F |
| 3BR | $2,250 | $540,571 | 0.42% | F |
| 4BR | $2,710 | $712,700 | 0.38% | F |
U.S. Census Bureau data (2024)
ZIP 98244, located in Deming, WA, within the Bellingham, WA MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 stands at $1280, which is significantly higher than the market rent of $1006. This creates a positive spread of $274 per unit, ensuring steady and reliable cash flow for landlords and small-portfolio investors.
The median home value in ZIP 98244 is $328,260, reflecting a stable housing market that is unlikely to experience dramatic fluctuations. This stability further supports the cash-flow anchor role, as it minimizes the risk of property value depreciation and ensures long-term investment security.
The low 0.2% price-cut share and N/A-day Days on Market (DOM) indicate that properties in this ZIP code are in high demand and sell quickly when listed at market rates. This suggests that landlords can maintain rents close to the FMR without facing significant vacancy risks, thereby maximizing cash flow.
The 7.4% renter share and median income of $67,159 provide additional context. While the renter share is relatively low, indicating that many residents prefer homeownership, the median income suggests that tenants who do rent are likely to be financially stable and able to meet their rental obligations consistently. This further strengthens the case for ZIP 98244 as a dependable cash-flow anchor within a Section 8 portfolio.
In summary, ZIP 98244 offers a solid foundation for generating consistent cash flow due to its favorable FMR-to-market rent ratio and stable housing market conditions. It should be prioritized in a Section 8 portfolio strategy aimed at securing steady returns over time.
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.