Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD 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 | $2,490 |
| 1 Bedroom | $2,590 |
| 2 Bedrooms | $2,870 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,310 |
| 5 Bedrooms | $5,000 |
| 6 Bedrooms | $5,600 |
| 7 Bedrooms | $6,048 |
| 8 Bedrooms | $6,350 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,590 | $357,831 | 0.72% | D |
| 2BR | $2,870 | $534,745 | 0.54% | F |
| 3BR | $3,660 | $715,061 | 0.51% | F |
| 4BR | $4,310 | $922,114 | 0.47% | F |
| 5BR | $5,000 | $1,138,838 | 0.44% | F |
U.S. Census Bureau data (2024)
Washington, DC's 20002 zip code is a dynamic area located in the Northeast Quadrant, encompassing vibrant neighborhoods like Capitol Hill and the H Street corridor. This district is geographically defined by the Anacostia River and includes the United States National Arboretum, providing significant green space. H Street is particularly known for its retail and dining options, serving as a major commercial hub that attracts a diverse mix of residents. The area has undergone substantial revitalization, transitioning into a sought-after location for young professionals.
Financially, 20002 presents a distinct picture compared to the broader region. The Fair Market Rent (FMR) for a 2-bedroom unit is $2,480, while the current market rent sits at $2,281, creating a negative gap of $199 per month. This indicates that standard voucher payments exceed typical market rates, potentially limiting options for voucher holders or requiring landlords to accept rents below the FMR ceiling. The median home value is $615,775, with properties lingering on the market for a median of 90 days. The median 2-bedroom sale price is $548,682.
The tenant pool is robust, with a renter share of 61.7% and a median household income of $120,337. This high income level relative to typical Section 8 demographics suggests that the area's voucher demand may come from specific affordable housing programs rather than general low-income need. The presence of the National Arboretum and the proximity to Capitol Hill add stability to the neighborhood's character. However, investors should verify local school ratings and specific transit accessibility, as these vary within the zip code.
For Section 8 investors, 20002 offers an appreciation play rather than immediate cashflow. The $199 deficit between FMR and market rent means relying solely on HUD limits yields lower returns than market-rate leasing. However, the area's continued development and high median income support long-term property value growth. The strongest angle is betting on the neighborhood's upward trajectory, where the premium location offsets the tighter rent margins.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.