Location: Seattle-Bellevue, WA | Metro: Seattle-Bellevue, WA HUD Metro FMR Area
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 | $2,130 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $4,030 |
| 5 Bedrooms | $4,675 |
| 6 Bedrooms | $5,236 |
| 7 Bedrooms | $5,655 |
| 8 Bedrooms | $5,938 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,220 | $277,923 | 0.8% | D |
| 2BR | $2,600 | $484,691 | 0.54% | F |
| 3BR | $3,390 | $877,102 | 0.39% | F |
| 4BR | $4,030 | $1,093,520 | 0.37% | F |
| 5BR | $4,675 | $1,252,666 | 0.37% | F |
U.S. Census Bureau data (2024)
Mukilteo, WA's ZIP code 98275 represents a predominantly residential neighborhood with a significant presence of homeowners and a relatively affluent community. The area has a total population of 21,323, with 29.4% of residents being renters. This indicates a mix of housing types but leans heavily towards owner-occupied homes. The median household income in this ZIP code is notably high at $132,861, reflecting a community where residents have strong financial standing. The median home value is also quite substantial, sitting at $933,715, which underscores the overall wealth and property values in the area.
From an investment perspective, the rent economics in ZIP 98275 are favorable for those looking to capitalize on the difference between market rents and the Fair Market Rent (FMR) set by HUD for Section 8 vouchers. The HUD FMR for the zip code for fiscal year 2024 is $2,800, while the actual market rent, as measured by ZORI, is lower at $2,304. This gap means that landlords who accept Section 8 vouchers can potentially receive higher rental payments than the market rate, making it a lucrative opportunity for hands-off operators who are willing to comply with the program's requirements.
The practical question for investors is whether ZIP 98275 suits a hands-off voucher operator or a hands-on value-add buyer. Given the high median income and median home value, along with the disparity between FMR and market rent, hands-off operators can find success by accepting Section 8 vouchers and securing steady, above-market rental income. However, for value-add buyers, the potential for increasing property values through improvements might be limited due to the already high median home value. Nonetheless, there could still be opportunities in managing properties efficiently and attracting tenants willing to pay closer to the FMR.
In summary, ZIP 98275 in Mukilteo, WA, offers a solid investment landscape for Section 8 landlords, particularly those seeking stable, hands-off returns. The economic conditions suggest that leveraging the higher voucher payment can provide a competitive edge over market rates, making it a desirable location for such investments.
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.