Section 8 Fair Market Rent (FMR) for ZIP 20005 - 2027

Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

Investment Score for ZIP 20005

Monthly Rent (2BR)

$3,150

Median Price (2BR)

$693,987

1% Rule

0.45%

Annual Yield

5.45%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,730
1 Bedroom	$2,850
2 Bedrooms	$3,150
3 Bedrooms	$4,010
4 Bedrooms	$4,730
5 Bedrooms	$5,487
6 Bedrooms	$6,145
7 Bedrooms	$6,637
8 Bedrooms	$6,969

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,850	$425,782	0.67%	D
2BR	$3,150	$693,987	0.45%	F
3BR	$4,010	$1,072,000	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,131

Median Household Income

$116,724

Housing Units

9,464

Renter Percentage

68.5%

Occupancy Rate

91.6%

Renter Occupied

5,938

To determine if you should buy in ZIP code 20005 (Washington, DC) for Section 8 investment, follow this decision tree:

1) Does FMR $2,690 (zip FY 2024) clear debt service on a $506,149 property?

No: The Fair Market Rent (FMR) of $2,690 is insufficient to cover the debt service on a property valued at $506,149. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this valuation, the rent would not generate enough income to sustain these expenses.

If the answer is no, you should not proceed with purchasing a property in this area for Section 8 purposes. However, if you consider other properties with lower valuations that can be serviced by the FMR, continue to the next question.

2) Is market rent $2,429 (ZORI) above, at, or below FMR?

Below FMR: The Zillow Observed Rental Index (ZORI) of $2,429 is below the FMR of $2,690. This suggests that market rents are lower than what the government will pay under the Section 8 program, making it potentially advantageous to participate in Section 8.

If the market rent is below the FMR, then participating in Section 8 could provide higher rental income compared to market rates. This makes it a favorable option for landlords seeking stable returns.

3) Are 68.5% renters + N/A-day DOM enough demand?

Yes: With 68.5% of residents being renters, there is significant demand for rental properties in this area. Additionally, the lack of data on days on market (DOM) indicates that properties are likely rented quickly once they become available, suggesting strong tenant interest.

The high percentage of renters combined with quick property turnover implies robust demand for housing, which is beneficial for landlords looking to fill their units promptly. Given these factors, the answer is yes, there is enough demand to support Section 8 investments in ZIP 20005.

In summary, while the FMR does not clear debt service on a $506,149 property, if you find a property with a lower valuation that can be serviced by the FMR, and market rents are below the FMR, then ZIP 20005 has sufficient demand to make it a viable option for Section 8 investment.

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.