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 | $3,170 |
| 1 Bedroom | $3,310 |
| 2 Bedrooms | $3,660 |
| 3 Bedrooms | $4,660 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,310 | $417,968 | 0.79% | D |
| 2BR | $3,660 | $733,093 | 0.5% | F |
| 3BR | $4,660 | $1,005,987 | 0.46% | F |
| 4BR | $5,490 | $1,307,247 | 0.42% | F |
| 5BR | $6,368 | $1,803,000 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP 20003 in the Washington, DC metropolitan area is a prime candidate for an appreciation play within a Section 8 portfolio strategy. The current Fair Market Rent (FMR) for ZIP 20003 in fiscal year 2024 is set at $3070, which is significantly higher than the average market rent of $2,521. This discrepancy indicates that properties in this ZIP code can command rents above the market average when participating in the Section 8 program, thus providing a financial cushion against potential market fluctuations.
The median home value in ZIP 20003 is $832,069, reflecting a robust housing market. However, the low 0.2% price-cut share and a relatively short 17-day Days on Market (DOM) suggest that properties in this area are in high demand and sell quickly, without the need for significant price reductions. This scenario supports the notion that ZIP 20003 is ripe for appreciation, as property values are likely to increase over time due to strong local demand and limited supply.
A key factor supporting this appreciation play is the high median income of $159,846 in the area. Landlords can expect tenants who are financially stable and less likely to default on rent payments, thereby reducing risk and increasing the likelihood of long-term occupancy. Additionally, the 63.0% renter share indicates a substantial portion of the population relies on rental housing, further bolstering the demand for properties in this ZIP code.
In summary, ZIP 20003 should be viewed as an appreciation play within a Section 8 portfolio strategy. The combination of high FMRs, quick sales, and a financially secure tenant base makes it an attractive investment opportunity for those looking to capitalize on property value growth.
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.