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 | $1,480 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $694,731 | 0.23% | F |
| 2BR | $2,120 | $868,063 | 0.24% | F |
| 3BR | $2,780 | $968,720 | 0.29% | F |
| 4BR | $2,790 | $1,145,323 | 0.24% | F |
U.S. Census Bureau data (2024)
Friday Harbor, WA, located in ZIP code 98250, is a charming coastal community with a population of 9,254. It stands out as a primarily owner-occupied area, with only 23.7% of residents being renters. The neighborhood boasts a high median household income of $88,556, reflecting its affluent character. Median home values in the area are substantial, at $859,599, indicating a robust real estate market driven by both local demand and the appeal of its scenic location.
From an investment perspective, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,810, while the actual market rent based on Census ACS data is $1,645. This suggests that Section 8 vouchers can cover a significant portion of the rental costs in the area, making it attractive for landlords who wish to participate in the program. The difference between the FMR and the market rent means that landlords can potentially attract tenants without facing the financial strain often associated with lower rental rates.
The question then arises: is this a suitable market for hands-off voucher operators or for those looking to actively manage and add value to their properties? Given the relatively low percentage of renters and the high median home values, Friday Harbor leans towards being a better fit for hands-on investors. These investors could focus on enhancing property values through renovations or strategic upgrades, catering to the affluent demographic and possibly commanding higher rents above the FMR. For hands-off operators, the market presents a stable but less dynamic opportunity, where the primary benefit lies in the alignment between the FMR and the local rental market, ensuring steady cash flow without the need for extensive management.
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.