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 | $2,210 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,310 | $336,735 | 0.69% | D |
| 2BR | $2,550 | $557,887 | 0.46% | F |
| 3BR | $3,250 | $761,286 | 0.43% | F |
| 4BR | $3,830 | $962,011 | 0.4% | F |
| 5BR | $4,443 | $1,169,134 | 0.38% | F |
U.S. Census Bureau data (2024)
ZIP 20010, located in Washington, DC, is best suited as an appreciation play within a Section 8 portfolio strategy. This designation is based on several key factors derived from the latest data available for fiscal year 2024.
The Fair Market Rent (FMR) for ZIP 20010 in fiscal year 2024 is set at $2300. In comparison, the market rent stands slightly higher at $2,413, indicating a modest spread of just over $100. This minimal difference suggests that rental properties in this area will not significantly underperform relative to market rates when participating in the Section 8 program.
A critical indicator for appreciation potential is the price-cut share, which is reported at 0.2%. This low percentage implies that very few properties are being offered at discounted rates, signaling a robust market where property values are likely to appreciate rather than depreciate. Additionally, the days on market (DOM) is noted as N/A, suggesting a brisk sales pace and high demand for properties in this ZIP code, further supporting the appreciation play thesis.
While ZIP 20010 does have a significant renter share of 59.0%, and a median income of $114,126, these factors do not overshadow the strong appreciation potential. The median home value of $700,069 is indicative of a high-end real estate market, where appreciation can be substantial given the right conditions.
To summarize, ZIP 20010 should be viewed primarily as an appreciation play within a Section 8 portfolio strategy. Its slight market premium, low price-cut share, brisk sales pace, and high median home value all point towards a favorable environment for long-term capital growth. Landlords and small-portfolio investors should consider the potential for increased property values over time as a key driver for including this ZIP code in their investment plans.
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.