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 | $1,910 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,990 | $263,237 | 0.76% | D |
| 2BR | $2,200 | $439,267 | 0.5% | F |
| 3BR | $2,800 | $593,287 | 0.47% | F |
| 4BR | $3,300 | $807,396 | 0.41% | F |
| 5BR | $3,828 | $1,104,520 | 0.35% | F |
U.S. Census Bureau data (2024)
Washington, DC 20011 encompasses neighborhoods like Takoma and Brightwood, areas characterized by a mix of sprawling, detached single-family homes and an increasing number of multi-family options. This quadrant is defined by its suburban feel within the city limits, anchored by green spaces like Rock Creek Park and the presence of major institutions such as the Walter Reed Army Medical Center campus, which is undergoing significant mixed-use redevelopment. The local government maintains strict tenant protections, meaning investors must navigate a regulatory landscape that heavily favors housing stability.
From a strictly numerical standpoint, this ZIP presents a challenging spread for voucher holders. The HUD SAFMR for a 2BR unit stands at $1,700, while the current market rent (Zillow ZORI) reaches $2,227, resulting in a negative cash-flow gap of $527 per month if landlords accept the payment standard as the ceiling. Acquisition costs are similarly steep, with a median home value of $622,770 and a median 2BR sale price of $441,652. However, supply is tight, evidenced by a median days on market of 96 days, suggesting that assets turn over slowly once acquired.
The tenant pool here is relatively affluent and stable, with a median household income of $110,309 and a renter share of 43.8%. This demographic profile suggests that competition for housing is high, and the demand for affordable vouchers is likely robust as lower-income service workers seek access to these neighborhoods. Access to quality public schools and Metro transit links further enhances the area's desirability, ensuring that rental demand remains consistent across all income brackets.
The Section 8 verdict for 20011 leans toward appreciation and stability rather than immediate cashflow. The substantial $527 gap between market rent and the 2BR SAFMR indicates that standard voucher payments will not cover prevailing market rates. The strongest investor angle here is banking on long-term asset growth in a high-barrier market, utilizing the voucher program to minimize vacancy risk rather than to maximize monthly yield.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.