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 | $1,620 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,950 | $453,554 | 0.43% | F |
| 3BR | $2,570 | $567,002 | 0.45% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 98288, Skykomish, WA, reveals a complex interplay between home values and rental dynamics that suggests a nuanced outlook for the next 12-24 months. The median home value stands at $457,220, which provides a solid foundation for assessing the local market's stability and potential growth.
With the percentage of listings reduced marked as N/A, it indicates an absence of significant downward pressure on home prices. This could imply that sellers are holding firm on their asking prices, reflecting a seller's market where pricing power remains robust. However, the median days on market (DOM) also being listed as N/A suggests either a very active market with quick sales or a lack of comprehensive data on recent transactions, which might indicate a less transparent market situation.
On the rental side, the Fair Market Rent (FMR) for ZIP 98288 for fiscal year 2024 is set at $2,210, while the current market rent is estimated at $1,417 according to Census ACS data. This discrepancy points towards a potential upward adjustment in rental rates, aligning with the FMR, which would benefit landlords and small-portfolio investors looking to capitalize on this trend. As rental rates increase to meet the FMR, the income generated from properties can improve, making rental investments more attractive.
For long-term hold investors, the setup implies a cautious approach towards appreciation expectations. Given the current median home value and the lack of definitive data on listing reductions and DOM, it's reasonable to anticipate modest appreciation rather than explosive growth. The market appears to be stable but not experiencing the rapid price increases seen in some other regions. Long-term investors should focus on the steady income from rentals and the gradual increase in property values, rather than short-term speculative gains.
In summary, the median home value of $457,220, combined with the potential for rental rates to rise closer to the FMR, suggests a market where investors can maintain strong pricing power and see a realistic appreciation thesis over the medium term. However, the absence of detailed data on listing reductions and DOM signals a need for careful monitoring of the local real estate trends to ensure continued success in the area.
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.