Location: Mount Vernon-Anacortes, WA | Metro: Mount Vernon-Anacortes, 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 | $1,340 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $603,312 | 0.25% | F |
| 2BR | $1,930 | $538,749 | 0.36% | F |
| 3BR | $2,670 | $615,722 | 0.43% | F |
| 4BR | $2,980 | $750,117 | 0.4% | F |
| 5BR | $3,457 | $857,657 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 98274 (Mount Vernon, WA) provides insight into potential investment returns under different rental scenarios. Using the Fair Market Rent (FMR) for a two-bedroom unit at $1890 per month, the annualized rent comes to $22,680. Against the median home value of $621,294, this implies a gross yield of approximately 3.65%. In contrast, using the market rent figure of $2,424 per month (ZORI), the annualized rent is $29,088, leading to a gross yield of about 4.68%.
The higher gross yield based on market rent reflects a more optimistic scenario where properties can command rents above the FMR. However, considering the 22.7% renter density in Mount Vernon, it is important to recognize that the majority of homeownership may limit the pool of potential tenants willing to pay market rates. The FMR-based gross yield of 3.65% is more aligned with the government-subsidized rental income typical of Section 8 properties, making it a more realistic expectation for investors.
The absence of data on days on market (DOM) suggests that the local rental market dynamics are not fully captured, potentially affecting the speed at which vacancies can be filled. Despite this, the analysis clearly shows that the gross yield under the FMR scenario is significantly lower than what could be achieved with market rents. This difference highlights the trade-offs between guaranteed, albeit lower, income from Section 8 versus the riskier pursuit of higher yields through market rents.
In summary, while the market rent scenario offers a more attractive gross yield of 4.68%, the FMR-based gross yield of 3.65% is more reflective of the realities faced by landlords participating in the Section 8 program in Mount Vernon, WA. Investors should consider these figures alongside other local market factors before making 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.