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 | $1,590 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,720 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $287,492 | 0.57% | F |
| 2BR | $2,000 | $452,702 | 0.44% | F |
| 3BR | $2,720 | $612,218 | 0.44% | F |
| 4BR | $3,340 | $736,063 | 0.45% | F |
| 5BR | $3,874 | $857,622 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 98264, located in Lynden, WA, stands out within Whatcom County due to its unique demographic and economic profile. With a population of 23,123 residents, 31.6% of whom are renters, it has a median income of $103,638 and a median home value of $622,649. These figures indicate a relatively affluent community where homeownership is the predominant housing situation.
For landlords and small-portfolio investors, the focus on Section 8 vouchers is crucial. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1730, which is notably lower than the market rent, measured by ZORI (Zillow Observed Rent Index), at $1,983. This discrepancy means that landlords accepting Section 8 vouchers in Lynden may face a slight shortfall in covering their costs compared to the market rate, but the stability of rental income and guaranteed government support can offset these financial challenges.
Given the data signature, Lynden's ZIP 98264 appears to be a stable market. The high median income and home values suggest a solid economic foundation, while the relatively low percentage of renters indicates a strong preference for homeownership among the local population. This stability is further reinforced by the modest difference between FMR and ZORI, indicating that the rental market is not significantly volatile. For investors, this suggests a reliable environment where Section 8 properties can be a consistent part of the investment portfolio without the risk of rapid changes in the local economy or housing preferences.
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.