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 | $1,670 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $287,905 | 0.6% | D |
| 2BR | $2,030 | $440,568 | 0.46% | F |
| 3BR | $2,650 | $543,396 | 0.49% | F |
| 4BR | $3,150 | $612,424 | 0.51% | F |
U.S. Census Bureau data (2024)
Sultan, WA, located in the 98294 ZIP code within the Seattle-Bellevue, WA HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area stands out as a diversifier due to its high median income and significant renter share.
The Federal Market Rent (FMR) for the 98294 ZIP code in fiscal year 2024 is set at $2210. However, the current market rent for this area is $1,662, indicating a substantial gap where landlords can potentially benefit from higher rents compared to what might be covered by Section 8 vouchers. The median home value in Sultan is $560,475, reflecting a relatively affluent community.
A key factor that makes this ZIP code a diversifier is the 15.0% share of renters in the population. This percentage suggests a mixed housing market where both homeowners and renters coexist, providing stability and variety to an investment portfolio. Additionally, the median income of $96,676 indicates that residents have a strong financial capacity, which could support higher rents and reduce the risk of default on rental payments.
The low 0.2% price-cut share and the non-applicable day Days on Market (DOM) metrics suggest that the housing market in Sultan is robust and properties are likely to sell quickly when listed, although these figures specifically relate to sales rather than rentals. Nonetheless, they point to a healthy local economy and demand for housing, which can translate into stable rental markets and potential for property value appreciation over time.
In conclusion, the 98294 ZIP code is best suited as a diversifier in a Section 8 portfolio strategy. Its combination of a reasonable renter share, high median income, and robust housing market offers a balanced approach to real estate investment, mitigating risks associated with solely relying on lower-income areas while still benefiting from the guaranteed payment structure of Section 8 vouchers.
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.