Section 8 Fair Market Rent (FMR) for ZIP 20038 - 2027

FY 2027 Fair Market Rent Rates

The Fair Market Rent (FMR) for ZIP code 20038 in Washington, D.C., for fiscal year 2024 is set at $1980. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the rent that tenants will pay; rather, it's the ceiling for the rent subsidy provided by the government.

To clarify, if you're considering your first Section 8 rental in this area, you should understand that the tenant will only pay a portion of the total rent, typically around 30-40% of their income, while the rest is covered by the housing authority up to the $1980 limit. This ensures that the overall rent remains affordable for low-income families.

Comparing this to the local market, there isn't enough data to provide a direct comparison to average rents in the area. However, the FMR serves as a benchmark for affordability in subsidized housing programs. The lack of specific local rent figures suggests that the housing market in ZIP 20038 might be unique or less documented compared to other areas, which could affect demand and acquisition costs.

The percentage of renters in the area is also listed as N/A, indicating that there is insufficient data to determine the exact proportion of renters versus homeowners. Despite this, the demand for affordable housing is likely high given the city's demographics and the purpose of the Section 8 program. Landlords should be prepared for a potentially competitive application process from eligible tenants.

Regarding the acquisition cost of properties in ZIP 20038, the median home value is also listed as N/A, which implies that there is limited data on property values. This could mean that the housing market is either too new or too specialized to have established averages, so it would be wise to consult local real estate agents or recent sales data to get an accurate sense of property costs.

Before proceeding with a Section 8 rental, one critical factor to verify is whether your property meets the Housing Quality Standards (HQS) required by the Department of Housing and Urban Development (HUD). These standards ensure that the rental unit is safe and habitable for tenants. A thorough inspection and any necessary repairs to meet HQS can prevent delays and ensure compliance with the program requirements.

Data Sources: FMR data from HUD (2027).

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.