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 | $1,610 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,760 | $514,625 | 0.54% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 98276 for Section 8 purposes must evaluate several key factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $1,570 for the fiscal year 2024 can cover the debt service on a property valued at $517,443. This involves calculating the monthly mortgage payment, including principal, interest, taxes, and insurance, and comparing it to the FMR. If the FMR is sufficient to meet these obligations, then the next question is whether the market rent of $1,721 (as per Census ACS data) is above, at, or below the FMR.
If the market rent is above the FMR, then the landlord can potentially charge higher rents to non-Section 8 tenants, thereby maximizing profitability. However, if the market rent is below the FMR, then the landlord might struggle to find non-Section 8 tenants willing to pay the lower market rate, which could lead to a reliance solely on Section 8 tenants.
The third consideration is whether there is enough rental demand to support a Section 8 property. In ZIP 98276, 14.4% of residents are renters. Additionally, the days on market (DOM) for rentals is listed as N/A, which suggests either insufficient data or a stable rental market where listings quickly find tenants. Assuming the latter, this percentage indicates a moderate demand for rental properties.
Decision Tree:
If the FMR of $1,570 clears debt service on a $517,443 property, proceed to the next question. Otherwise, do not purchase for Section 8.
If the market rent of $1,721 is above the FMR, the answer is yes, you should buy here for Section 8. If it's at or below the FMR, consider the demand for rentals before making a decision.
If the 14.4% of renters plus the quick turnover of listings (N/A-day DOM) indicate strong demand, the answer is yes, you should buy here for Section 8. If demand is weak or uncertain, the answer is no.
In summary, if the FMR covers your debt service, the market rent is higher than the FMR, and there is a strong demand for rentals, then the answer is clearly yes. If any of these conditions are not met, the decision will depend on further analysis of the local market dynamics and financial projections.
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.