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 | $3,000 |
| 1 Bedroom | $3,130 |
| 2 Bedrooms | $3,460 |
| 3 Bedrooms | $4,410 |
| 4 Bedrooms | $5,190 |
| 5 Bedrooms | $6,020 |
| 6 Bedrooms | $6,742 |
| 7 Bedrooms | $7,281 |
| 8 Bedrooms | $7,645 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,130 | $406,540 | 0.77% | D |
| 2BR | $3,460 | $934,482 | 0.37% | F |
| 3BR | $4,410 | $1,704,859 | 0.26% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 20037, located in Washington, DC, District of Columbia County, are straightforward but require careful consideration for landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $2,520. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a two-bedroom unit in this specific area.
In contrast, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rent Index), is $3,165. This discrepancy highlights the difference between the subsidized rate and the actual market rate. To understand what a voucher actually pays, you must consider both the tenant's portion and the utility allowances.
The tenant is required to contribute 30% of their adjusted income toward rent. If we assume an average adjusted income for a household in this area, the tenant’s contribution would be calculated accordingly. For instance, if a household has an adjusted income of $2,000 per month, they would contribute $600 towards rent. The remaining balance would be covered by the Section 8 voucher up to the SAFMR limit of $2,520.
Utility allowances are also provided by the voucher program, which can vary based on the number of bedrooms and the location. These allowances do not directly increase the rent reimbursement but help cover additional living costs. In ZIP 20037, the utility allowance for a two-bedroom unit might range from $200 to $300 per month, depending on specific circumstances.
To illustrate, if a landlord sets the rent at $2,520, the total monthly payment received would be the sum of the tenant’s contribution and the voucher reimbursement. Using our example, with a tenant paying $600, the voucher would cover the remaining $1,920, bringing the total to $2,520. However, if the landlord charges the local market rate of $3,165, the voucher would still only reimburse up to $2,520, leaving a reimbursement gap of $645 per month.
In summary, the typical reimbursement gap for a two-bedroom apartment in ZIP 20037 is $645 per month when charging the local market rate. Landlords should carefully evaluate whether accepting a Section 8 voucher at the SAFMR rate of $2,520 aligns with their financial goals or if they prefer to seek higher rents from non-voucher tenants.
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.