Section 8 Fair Market Rent (FMR) for ZIP 20009 - 2027

Investment Score for ZIP 20009

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	$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

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	$3,310	$394,175	0.84%	C
2BR	$3,660	$672,785	0.54%	F
3BR	$4,660	$1,079,340	0.43%	F
4BR	$5,490	$1,467,109	0.37%	F
5BR	$6,368	$1,712,639	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20009 (Washington, DC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 20009 in Washington, DC, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $3370. However, the actual median rent for a two-bedroom unit on Zillow is $683,297, which translates to a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio is 16.9x, indicating that the actual rental costs are significantly higher than the FMR. This suggests that tenants with Section 8 vouchers will face significant challenges finding housing that fits within their budget. The voucher amount would cover only a fraction of the actual rent, leaving a substantial gap that must be filled by the tenant. #### Affordability & Renter Profile ZIP code 20009 has a median household income of $146,664, which is quite high compared to the national average. Given that 64.7% of the population are renters, it indicates a strong demand for rental properties. However, the occupancy rate of 91.2% suggests that the market is relatively tight, with few vacant units available. The high median rent and low vacancy rate imply that the market is competitive and favoring landlords. Given the high median income and the high rent-to-income ratio, the typical renter in this area is likely to be well-employed individuals or families who can afford the high rents. The 27.6% of median income required for a two-bedroom apartment under the FMR guidelines is still quite affordable for the majority of residents, but it remains a challenge for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 20009 presents a mixed picture. While the occupancy rate is high, the actual rents far exceed the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The FMR for a two-bedroom unit is $3370, while the actual median rent is much higher, suggesting that investors focusing on Section 8 tenants might struggle to find properties that fit within the voucher limits. To determine if the ZIP is cash-flow positive at FMR, we need to consider the actual rental prices versus the FMR. Given that the actual median rent for a two-bedroom unit is $683,297, which is approximately $5694 per month (assuming a 12-month mortgage), the FMR of $3370 is insufficient to cover the cost. Therefore, the ZIP is not cash-flow positive at FMR for Section 8-focused investors. In terms of investment grade, the high median income and occupancy rate suggest that the area is generally stable and attractive for investors. However, the high price-to-FMR ratio and the limited availability of properties fitting within the voucher limits make it less favorable for Section 8-focused investments. #### Specific Actionable Insights 1. **Target Non-Section 8 Tenants**: Given the high actual rents and the low likelihood of finding properties that fit within the FMR guidelines, investors should focus on attracting non-Section 8 tenants. This could involve marketing to professionals, young families, or other groups with higher incomes. 2. **Consider Property Renovation**: If an investor is interested in targeting Section 8 tenants, they might consider purchasing and renovating older properties that could potentially be rented out at lower rates. This approach could help in aligning the rental costs closer to the FMR, thus making them more accessible to voucher holders. 3. **Evaluate Long-Term Investment Potential**: Despite the challenges posed by the high price-to-FMR ratio, the ZIP code 20009 offers long-term investment potential due to its high occupancy rate and median income. Investors might consider holding properties for longer periods to benefit from appreciation and steady rental income. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** ZIP code 20009. The high actual rents and the limited number of properties fitting within the FMR guidelines make it difficult to achieve positive cash flow. Instead, investors should look for areas with a more favorable price-to-FMR ratio or consider diversifying their portfolio to include both Section 8 and non-Section 8 tenants. For general real estate investors seeking long-term gains, the ZIP code could be considered for **Hold**, given its strong economic indicators and high demand for rental properties.

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.