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 | $1,970 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,060 | $261,842 | 0.79% | D |
| 2BR | $2,280 | $434,434 | 0.52% | F |
| 3BR | $2,910 | $572,965 | 0.51% | F |
| 4BR | $3,420 | $740,239 | 0.46% | F |
| 5BR | $3,967 | $980,755 | 0.4% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 20017 in Washington, DC reveals several key insights for landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1830, while the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $2,244. This means that landlords aiming to meet market rates will not be fully covered by the FMR subsidy, leaving a shortfall of $414 per unit.
Acquisition of properties in ZIP 20017 is challenging due to the high median home value of $540,993. With no available data on days on market (DOM) and a low 0.2% share of homes requiring price cuts, it suggests that the housing market is relatively stable and competitive, making it difficult for new investors to enter without substantial capital.
Tenant demand remains strong. The ZIP code has a population of 21,208, with 42.4% of residents being renters. This indicates a significant number of potential tenants, approximately 9,000 individuals, who are actively seeking rental properties within the area.
Verdict: While there is robust tenant demand in ZIP 20017, the discrepancy between the FMR and market rent presents a financial challenge for landlords. Additionally, the high median home value and stable market conditions make property acquisition less affordable for new investors. Landlords should carefully consider these factors before investing in the area, focusing on maximizing non-rental income sources or finding ways to reduce operational costs to remain profitable.
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.