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 | $3,060 |
| 1 Bedroom | $3,190 |
| 2 Bedrooms | $3,530 |
| 3 Bedrooms | $4,500 |
| 4 Bedrooms | $5,300 |
| 5 Bedrooms | $6,148 |
| 6 Bedrooms | $6,886 |
| 7 Bedrooms | $7,437 |
| 8 Bedrooms | $7,809 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,190 | $413,706 | 0.77% | D |
| 2BR | $3,530 | $659,296 | 0.54% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 20004 in Washington, DC, hinges on analyzing its yield and stability metrics. The Fair Market Rent (FMR) for the fiscal year 2024 stands at $3,010, significantly higher than the market rent of $2,689. This suggests a strong potential for rental yields if properties can secure tenants at or near the FMR rates. Additionally, the median home value in the area is $431,059, indicating a robust real estate market.
Evaluating stability, the data shows that 57.4% of residents are renters, which points towards a solid demand for rental housing. However, the lack of data on days on market (DOM) introduces some uncertainty regarding how quickly properties can be leased. The median household income in the area is $184,792, providing a financial cushion for tenants and reducing the risk of default.
Based on these figures, ZIP 20004 leans toward being a high-yield market due to the substantial gap between FMR and market rents. The stability factor is moderately high, given the significant percentage of renters and the relatively high median income. Despite the absence of DOM data, the overall picture suggests a market that is not purely a flip-style high-risk environment but rather a zone offering both attractive returns and reasonable tenant reliability.
To summarize, ZIP 20004 is best characterized as a market offering above-average yields with moderate stability. Landlords and small-portfolio investors should consider these factors when evaluating investment opportunities in this area.
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.