Location: Island County, 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 | $1,620 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $585,793 | 0.29% | F |
| 2BR | $1,950 | $676,022 | 0.29% | F |
| 3BR | $2,650 | $771,435 | 0.34% | F |
| 4BR | $3,160 | $1,007,348 | 0.31% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 98282 in Washington for fiscal year 2024 is set at $2,420. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit, which is determined by the U.S. Department of Housing and Urban Development (HUD). It's important to note that this is not the amount you will receive as rent; it's a guideline that ensures the housing is affordable to low-income tenants.
In comparison, the typical market rent for ZIP 98282, known as the Zillow Observed Rent Index (ZORI), stands at $2,725. This indicates that if you're entering the Section 8 market, you'll likely be receiving less than the average market rent for the area. However, the stability of tenant payments through the government program often compensates for this difference.
The demand for Section 8 rentals in this area is significant, with renters making up 9.7% of the total population. This suggests that there are many potential tenants who could benefit from the affordability of a Section 8 rental, making it easier to fill your property.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in ZIP 98282 is approximately $728,538. This figure should be factored into your investment strategy, alongside any renovation costs you might incur to meet the necessary standards for the program.
Before finalizing your decision, verify that the property meets all the required criteria for Section 8 eligibility. This includes ensuring that the unit passes a housing quality standards (HQS) inspection, which checks for safety, cleanliness, and structural soundness. Additionally, confirm that the rent you plan to charge does not exceed the FMR limit set by HUD for the area.
Entering the Section 8 market can be a strategic move for landlords and small-portfolio investors looking to secure long-term, stable tenancy. With the demand in ZIP 98282 being relatively high, and the FMR providing a clear guideline for affordability, you can make informed decisions about your investment.
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.