Section 8 Fair Market Rent (FMR) for ZIP 20109 - 2027

Investment Score for ZIP 20109

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	$2,090
1 Bedroom	$2,180
2 Bedrooms	$2,410
3 Bedrooms	$3,070
4 Bedrooms	$3,620
5 Bedrooms	$4,199
6 Bedrooms	$4,703
7 Bedrooms	$5,079
8 Bedrooms	$5,333

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,180	$248,833	0.88%	C
2BR	$2,410	$332,162	0.73%	D
3BR	$3,070	$441,234	0.7%	D
4BR	$3,620	$556,879	0.65%	D
5BR	$4,199	$596,549	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20109 (Manassas, VA) #### Section 8 Voucher Dynamics In ZIP code 20109, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2200 per month. This figure represents 29.3% of the median household income of $89,962, indicating that it is a reasonable benchmark for affordability. However, the actual rent prices in Manassas are significantly higher. The Zillow median price for a two-bedroom rental property is $334,400, which translates to a monthly rent of approximately $1400 based on typical mortgage calculations. This implies that the actual market rent for a two-bedroom unit is likely much higher than the FMR, given the high price-to-FMR ratio of 12.7x. Therefore, voucher holders face significant constraints in finding affordable housing within their budget. They would need to look for properties priced around the FMR level, which is far below the market average. #### Affordability & Renter Profile The renter population in Manassas is substantial, with 56.2% of households being renters. This high percentage suggests a strong demand for rental properties. The occupancy rate of 96.1% indicates that the market is relatively tight, with most available units being occupied. Given the median household income of $89,962, many residents might find it challenging to afford market-rate rents, especially for larger units. The FMR for a three-bedroom unit is $2780, which is 31% of the median income, and for a four-bedroom unit, it is $3260, or 36.2%. These figures suggest that families with multiple bedrooms are particularly strained by the cost of living in Manassas. The high renter percentage and occupancy rate indicate that there is a robust demand for rental housing, but the supply is limited, making it a competitive market. #### Investor Angle From an investor perspective, the ZIP code 20109 presents both opportunities and challenges. The FMRs for various unit sizes are significantly lower than the actual market rents, which means that properties rented at FMR levels will likely generate negative cash flow. For example, a two-bedroom unit renting at $2200 per month would struggle to cover the costs associated with a property valued at $334,400, including mortgage payments, maintenance, and other expenses. The high price-to-FMR ratio of 12.7x further underscores this issue. Therefore, the investment grade for properties in this ZIP code, when considering Section 8 vouchers, is relatively low due to the negative cash flow potential. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as studios and one-bedroom apartments. The FMR for these units is $1910 and $1970 respectively, which are closer to the actual market rents. This could provide a better chance of achieving positive cash flow, although still challenging given the high overall market prices. 2. **Seek Out Affordable Housing Projects**: Engage in projects that specifically cater to affordable housing. These projects often receive government subsidies and tax incentives, which can offset some of the financial pressures of renting at FMR levels. Additionally, these projects are more likely to attract Section 8 voucher holders, thereby ensuring a steady stream of tenants. 3. **Consider Long-Term Appreciation**: While cash flow might be negative in the short term, the long-term appreciation of property values in Manassas could make it a worthwhile investment. If the property value increases over time, the eventual sale could provide a significant return on investment, despite the initial financial strain. #### Bottom Line Given the high market rents compared to FMRs and the resulting negative cash flow potential, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they have access to affordable housing projects or are willing to take a long-term view on appreciation. The tight market and high occupancy rates make it difficult to find properties that can be rented at FMR levels without significant financial loss. Therefore, investing in this area strictly for Section 8 tenants is not advisable at present.

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.