Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,080 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
To determine if a landlord should invest in ZIP code 20056 for Section 8 properties, follow this decision tree:
Step 1: Can the Fair Market Rent (FMR) of $1980 cover the debt service?
No: If the FMR cannot cover the debt service on a property, then investing in this ZIP code is not advisable. Debt service must be covered to ensure that mortgage payments are made and the property remains solvent.
Yes: Proceed to the next step.
Step 2: How does the market rent compare to the FMR?
Market Rent Above FMR: If the market rent is higher than the FMR of $1980, landlords can potentially earn additional income from non-Section 8 tenants, making the investment more attractive.
Market Rent At or Below FMR: If the market rent is at or below the FMR, landlords will need to rely solely on the FMR to cover expenses. This makes the investment less favorable unless there are other compelling reasons to invest in this area.
Step 3: Is the demand sufficient?
It Depends: The data indicates that the percentage of renters and the days on market (DOM) are not available. To make an informed decision, landlords would need to research the local rental market to understand the demand for housing. Specifically, they should look into the vacancy rates and the number of potential applicants for Section 8 housing in ZIP 20056.
Without specific data on market rent and the percentage of renters, the decision to invest in ZIP 20056 for Section 8 properties hinges on whether the FMR can cover the debt service and the overall demand for rental units in the area. Landlords must conduct thorough market research to fill in these gaps and make a sound investment choice.
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.