Location: Seattle-Bellevue, 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 | $1,840 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,910 | $547,484 | 0.35% | F |
| 2BR | $2,240 | $608,759 | 0.37% | F |
| 3BR | $2,920 | $688,177 | 0.42% | F |
| 4BR | $3,470 | $795,821 | 0.44% | F |
| 5BR | $4,025 | $778,528 | 0.52% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 98292, Stanwood, WA, include significant tenant turnover due to the disparity between the market rent of $2,035 and the Fair Market Rent (FMR) of $2,210 for FY 2024. This gap can lead to dissatisfaction among tenants who might be accustomed to the lower market rates, increasing the likelihood of frequent moves. Additionally, the area faces a notable vacancy exposure with an average Days on Market (DOM) of 20 days, indicating that properties may remain vacant longer than desirable, reducing cash flow. The deferred maintenance risk is also present, given the typical home value of $716,209 and the median income of $101,765. Landlords must be prepared to manage properties that may require substantial upkeep, which can be costly and time-consuming.
However, these risks are mitigated by the high renter share of 20.7%, suggesting a robust demand for rental properties. High renter density typically correlates with increased demand for housing vouchers, providing a stable source of tenants through the Section 8 program. The combination of these factors creates a balanced scenario where, while challenges exist, there is a strong foundation for successful Section 8 investments.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.