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 | $1,420 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,430 |
| 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 |
|---|---|---|---|---|
| 1BR | $1,460 | $541,804 | 0.27% | F |
| 2BR | $1,790 | $495,473 | 0.36% | F |
| 3BR | $2,430 | $601,605 | 0.4% | F |
| 4BR | $2,990 | $702,390 | 0.43% | F |
| 5BR | $3,468 | $767,542 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 98248, located in Ferndale, WA, has a population of 28,498. With 23.3% of residents being renters, it indicates that this area is moderately renter-heavy but not dominated by renters. The median household income stands at $91,060, which provides a strong economic foundation for the local rental market.
The typical market rent of $2,127 is notably higher than the Fair Market Rent (FMR) figure of $1,510 for FY 2024, suggesting that the local rental market may be slightly above the federal benchmark. This discrepancy could imply that landlords in 98248 might find it challenging to attract tenants who solely rely on housing vouchers, as the voucher amounts may not cover the full cost of market rents.
To understand the financial burden of renting on local incomes, consider that the average rent of $2,127 represents approximately 23.4% of the median household income. This percentage is relatively high, indicating that rent consumes a significant portion of income, which could make it difficult for voucher recipients to find suitable housing without additional financial support.
When comparing the market rent to the FMR, it's clear that the gap between the two is substantial. Landlords should be prepared to either offer rents closer to the FMR level to accommodate voucher tenants or seek out tenants who can supplement their voucher amount to meet the higher market rates.
In terms of tenant profiles, landlords in 98248 should anticipate a mix of tenants. Some will be individuals and families who can afford market rents without assistance, while others will be those relying on Section 8 vouchers. Given the higher market rent compared to the FMR, voucher holders may be limited in their options and could be more selective about the quality and amenities of the properties they choose.
For small-portfolio investors, the key is to balance property quality with affordability. Properties that are well-maintained and offer basic amenities are likely to attract both market-rate and voucher-assisted tenants. However, given the higher market rents, investors should be cautious about overpricing their units, as this could limit the pool of potential tenants and lead to prolonged vacancy periods.
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.