Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,060 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 20006 for Section 8 properties, follow these steps:
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 20006 in fiscal year 2024 is $2030. For a property valued at $229,849, determine if this FMR can cover the debt service. If the monthly debt service is less than or equal to $2030, proceed to the next step. Otherwise, the answer is No.
2. Market Rent Comparison: The median market rent (ZORI) for ZIP 20006 is $2005. Compare this figure to the FMR of $2030. If the market rent is above the FMR, the answer is Yes, indicating that there's potential for higher rents outside of Section 8. If the market rent is exactly at the FMR, the answer is It Depends, as it suggests equilibrium between market and subsidized rents. If the market rent is below the FMR, the answer is No, suggesting that market rents are too low to justify investment.
3. Demand Analysis: In ZIP 20006, 94.1% of residents are renters, which indicates strong demand. However, the Days on Market (DOM) is listed as N/A, making it difficult to assess how quickly properties are typically rented out. Given the high percentage of renters, the answer leans towards Yes. But without specific DOM data, it's important to research further into local rental dynamics to confirm if the demand is sufficient to support your investment.
To summarize:
Note: Ensure you also consider other factors such as property management costs, vacancy rates, and the availability of Section 8 vouchers in the area before making an investment decision.
Data Sources: FMR data from HUD (2027). 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.