Section 8 Fair Market Rent (FMR) for ZIP 98261 - 2027

Location: San Juan County, WA | Metro: San Juan County, WA

Investment Score for ZIP 98261

Monthly Rent (2BR)

$1,670

Median Price (2BR)

$894,709

1% Rule

0.19%

Annual Yield

2.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,160
1 Bedroom	$1,280
2 Bedrooms	$1,670
3 Bedrooms	$2,190
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,280	$689,127	0.19%	F
2BR	$1,670	$894,709	0.19%	F
3BR	$2,190	$1,033,780	0.21%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,984

Median Household Income

$80,119

Housing Units

2,415

Renter Percentage

19.4%

Occupancy Rate

60.8%

Renter Occupied

285

Lopez, WA, located in ZIP code 98261, is a part of the San Juan Islands and offers a unique blend of rural charm and natural beauty. The area is characterized by its small-town feel, picturesque landscapes, and limited housing stock, making it an interesting market for real estate investors, particularly those interested in Section 8 properties.

The Fair Market Rent (FMR) for the Lopez metro area for fiscal year 2026 is set at $1,560 per month, which is higher than the average market rent.
The average market rent in Lopez, as reported by the Census American Community Survey (ACS), stands at $1,168 per month, indicating that there is potential for rental income to rise towards the FMR level.
The median home value in Lopez is $859,596, reflecting the high cost of living and property ownership in this exclusive island community.
Renters make up 19.4% of the population, suggesting a moderate demand for rental properties but also highlighting the importance of owner-occupied homes in the local economy.
The median income in Lopez is $80,119, which is relatively stable and supports the ability of residents to afford higher rents.
The Days on Market (DOM) for rental listings is not available, which could indicate a fast-moving market or limited data on rental turnover rates.

In summary, Lopez presents a niche market with opportunities for investors who can navigate the higher fair market rents while considering the existing rental rates and median income levels. The moderate renter share suggests a balanced market, and the high median home values underscore the desirability of the location. However, the lack of specific data on rental listing turnover rates means investors should proceed with caution and seek additional local insights to make informed decisions.

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.