Location: San Juan County, WA | Metro: San Juan County, WA
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 | $1,270 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,390 | $757,124 | 0.18% | F |
| 2BR | $1,820 | $838,167 | 0.22% | F |
| 3BR | $2,380 | $1,034,365 | 0.23% | F |
| 4BR | $2,390 | $1,259,072 | 0.19% | F |
U.S. Census Bureau data (2024)
The ZIP code 98245, located in Eastsound, WA, presents a unique challenge for renters when considering the cost of housing against their median income. The median household income in this area is $95,811, which places a significant constraint on monthly rental expenses. At the market rate of $1,361 per month, as reported by the Census ACS, a household would be spending approximately 17.5% of their annual income on rent alone. This figure is already a substantial portion of the total income, indicating that many households might struggle to cover additional living costs while maintaining this level of expenditure.
Comparatively, the Fair Market Rent (FMR) set at $1,610 for the fiscal year 2026 represents an even higher financial burden for renters. If a household were to pay this amount, it would equate to nearly 20% of their annual income, which is unsustainable for most families. This disparity highlights a significant affordability gap, where the market and government-set rates exceed what is comfortable for residents based on their income levels.
Given that only 19.8% of the 4,265 population are renters, the competition among landlords is likely to be fierce. Landlords must consider both the financial capabilities of potential tenants and the limited pool of renters in the area. Offering competitive pricing below the market rate could attract more tenants, but it also means accepting lower returns on investment. Alternatively, relying on Section 8 vouchers, which are capped at the FMR, might secure steady tenancy but at the expense of higher administrative costs and less flexibility in setting rental prices.
The takeaway for landlords is clear: while the voucher standard of $1,610 aligns closely with the FMR, it significantly strains the average household budget. Landlords should weigh the benefits of cash-paying tenants who can afford slightly above-market rates against the stability offered by voucher holders. To maximize occupancy and profitability, landlords might consider a mixed strategy, offering a range of rental options and being mindful of the financial pressures faced by local renters.
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.