Section 8 Fair Market Rent (FMR) for ZIP 98270 - 2027

Investment Score for ZIP 98270

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	$1,730
1 Bedroom	$1,800
2 Bedrooms	$2,110
3 Bedrooms	$2,750
4 Bedrooms	$3,270
5 Bedrooms	$3,793
6 Bedrooms	$4,248
7 Bedrooms	$4,588
8 Bedrooms	$4,817

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	$1,800	$426,096	0.42%	F
2BR	$2,110	$473,387	0.45%	F
3BR	$2,750	$604,931	0.45%	F
4BR	$3,270	$693,525	0.47%	F
5BR	$3,793	$780,393	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 98270 (Marysville, WA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 98270 in Marysville, WA, indicate that the rent for a two-bedroom unit is set at $2,160 per month. This figure represents 24.0% of the median household income of $108,147, which suggests that it is reasonably aligned with the local economic conditions. However, when comparing the FMR to actual rental prices, we see a significant discrepancy. The Zillow median price for a two-bedroom unit is $479,326, which translates into a monthly rent of approximately $1,997 based on a typical mortgage payment formula (assuming a 30-year fixed-rate mortgage at 4.5% interest). This implies that the actual market rent for a two-bedroom unit is slightly below the FMR, but still higher than what many voucher holders can afford. Given that the FMR is $2,160 and the actual market rent is around $1,997, there is a constraint for voucher holders who might find it challenging to secure units within their budget. Additionally, the occupancy rate of 97.9% indicates a very tight rental market, making it even harder for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 98270 has a population of 55,049, with 29.4% of residents being renters. This percentage suggests that there is a substantial demand for rental properties in the area. Given the median household income of $108,147, the majority of residents are likely middle-class families or individuals who can afford higher rents. However, the affordability gap is evident when considering that the FMR for a two-bedroom unit is $2,160, while the actual market rent is around $1,997. This means that even though the FMR is slightly above the market rent, it still represents a significant portion of the median income, indicating that the market is relatively tight for lower-income renters. The high occupancy rate of 97.9% further supports the notion that the rental market is competitive. This tightness could lead to upward pressure on rents, potentially outpacing the FMR increases. For voucher holders, finding affordable housing will continue to be a challenge due to the limited supply and high demand. #### Investor Angle From an investor perspective, the ZIP code 98270 offers a mixed picture. The FMR for a two-bedroom unit is $2,160, which is slightly above the actual market rent of $1,997. However, the high occupancy rate suggests that there is strong demand for rental properties, which could translate into steady cash flow if the investor can secure tenants willing to pay the FMR. To assess the investment grade, we need to consider the price-to-FMR ratio, which is 18.5x. This ratio is calculated by dividing the median home value by the FMR for a similar-sized unit. A ratio of 18.5x is quite high, suggesting that the property values are significantly higher than the rental income potential. This could make it difficult for investors to achieve positive cash flow without significant appreciation in property values. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should focus on acquiring units where the rent is below the FMR. For instance, a two-bedroom unit rented at $1,800 would be more attractive to voucher holders and could ensure steady occupancy. This strategy leverages the high demand for rental properties while aligning with the financial capabilities of voucher holders. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments might offer better cash flow opportunities. The FMR for a one-bedroom unit is $1,850, which is closer to the actual market rent. This could provide a more balanced investment scenario, especially if the investor can negotiate rents close to the FMR. 3. **Monitor Local Economic Indicators**: The median household income and population growth trends should be closely monitored. If income levels continue to rise, the affordability gap may widen, making it even more challenging for lower-income renters to find housing. Conversely, if population growth continues, the demand for rental properties will remain robust, supporting higher rents and potentially positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 98270 is to **Hold**. While the market shows strong demand and reasonable alignment between FMR and actual rents, the high price-to-FMR ratio poses a significant challenge to achieving positive cash flow. Investing in units where the rent is below the FMR or focusing on smaller units could mitigate some of these risks, but overall, the market dynamics suggest a cautious approach. Investors should carefully evaluate individual properties and consider the broader economic context before making any purchases.

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.