Section 8 Fair Market Rent (FMR) for ZIP 20032 - 2027

Investment Score for ZIP 20032

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	$1,530
1 Bedroom	$1,600
2 Bedrooms	$1,770
3 Bedrooms	$2,260
4 Bedrooms	$2,660
5 Bedrooms	$3,086
6 Bedrooms	$3,456
7 Bedrooms	$3,732
8 Bedrooms	$3,919

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	$1,600	$140,403	1.14%	B
2BR	$1,770	$213,244	0.83%	C
3BR	$2,260	$343,723	0.66%	D
4BR	$2,660	$423,659	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20032 (Washington, DC) #### Section 8 Voucher Dynamics In ZIP code 20032, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1620 per month. This figure represents the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom property is $218,852, which translates to a monthly mortgage payment far exceeding the FMR. Given the price-to-FMR ratio of 11.3x, it is clear that the actual rents in the area are well above the FMR. For example, a typical two-bedroom unit might cost around $18,348 annually ($1620 x 11.3), or approximately $1529 per month. This means that voucher holders face significant constraints in finding affordable housing within their budget. They would likely need to seek out properties that are below the average market rate or negotiate with landlords to accept lower rent payments. #### Affordability & Renter Profile ZIP code 20032 has a high concentration of renters, with 77.4% of households being renters. The median household income is $49,139, which suggests that many residents are low-income families who rely on government assistance such as Section 8 vouchers. The occupancy rate of 89.4% indicates that the housing market is relatively tight, with most units occupied. This tightness is exacerbated by the fact that the FMR for a two-bedroom unit represents only 39.6% of the median income. This implies that even without considering the high rental costs, many residents struggle to afford housing. The high renter percentage and the relatively low median income suggest that the majority of residents are likely to be low-income individuals or families. The market is tight, meaning there is a strong demand for rental properties, but the supply is limited, particularly when it comes to affordable units. This makes it challenging for voucher holders to find suitable housing, as they must navigate a competitive market where rents often exceed their allowable payment. #### Investor Angle From an investor perspective, the ZIP code 20032 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1620, which is the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market is much higher, with the median price of a two-bedroom property translating to a monthly mortgage payment of about $1529. This means that if an investor were to purchase a property at the median price and rent it out at the FMR, they would still be able to cover their mortgage payments and potentially generate some cash flow, assuming other expenses like maintenance and property taxes are managed effectively. However, the investment grade in this ZIP code is moderate due to the high proportion of low-income residents and the tight market conditions. While there is a steady demand for affordable housing, the competition for tenants is fierce, and landlords may need to offer additional amenities or services to attract and retain Section 8 voucher holders. Additionally, the high price-to-FMR ratio of 11.3x suggests that the market is overpriced relative to the FMR, which could lead to difficulties in finding tenants willing to pay the full market rate. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are priced closer to the FMR. For instance, a two-bedroom unit priced at $1800 per month would be more attractive to voucher holders and could ensure a steady stream of tenants. This strategy would also help mitigate the risk of vacancy and allow for better cash flow management. 2. **Negotiate with Landlords**: Since the actual rental market is much higher than the FMR, landlords may be willing to negotiate rent prices to attract Section 8 voucher holders. Investors could consider offering incentives such as reduced rent or additional services to make their properties more appealing to this demographic. 3. **Consider Multi-Family Properties**: Given the high renter percentage and the tight market, multi-family properties could be a good investment. These properties can provide economies of scale and potentially higher returns, especially if they are located in areas with high demand for affordable housing. #### Bottom Line For Section 8-focused investors, ZIP code 20032 presents a mixed picture. While there is a strong demand for affordable housing and a high concentration of renters, the actual rental market is significantly higher than the FMR, which poses challenges for voucher holders. The investment grade is moderate, with potential for cash flow if properties are priced appropriately. Based on these factors, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate the specific properties they are interested in, ensuring that they are priced close to the FMR to maximize their chances of attracting and retaining Section 8 voucher holders.

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.