Section 8 Fair Market Rent (FMR) for ZIP 20110 - 2027

Investment Score for ZIP 20110

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	$1,960
1 Bedroom	$2,040
2 Bedrooms	$2,260
3 Bedrooms	$2,880
4 Bedrooms	$3,390
5 Bedrooms	$3,932
6 Bedrooms	$4,404
7 Bedrooms	$4,756
8 Bedrooms	$4,994

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	$2,040	$228,740	0.89%	C
2BR	$2,260	$313,627	0.72%	D
3BR	$2,880	$457,443	0.63%	D
4BR	$3,390	$631,245	0.54%	F
5BR	$3,932	$705,621	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 20110 (Manassas, VA) #### Section 8 Voucher Dynamics In ZIP code 20110, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,080 per month for 2026. This amount represents 21.1% of the median household income in the area, which stands at $118,486. However, it is important to note that the actual rent prices can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $310,212, translating to a monthly mortgage payment that would far exceed the FMR. Given the high price-to-FMR ratio of 12.4x, voucher holders face significant constraints in finding affordable housing. They are likely limited to a small subset of properties that fall within the FMR guidelines, making it challenging to secure suitable accommodation. #### Affordability & Renter Profile The renter population in ZIP code 20110 constitutes 26.6% of the total 49,890 residents. With a median household income of $118,486, renters in this area tend to be individuals or families who may have lower incomes relative to the overall population or those who prefer renting over buying due to the high cost of homeownership. The occupancy rate of 97.5% suggests that the rental market is quite tight, with very few vacant units available. This indicates a strong demand for rental properties, which could lead to higher rents and greater competition among tenants. The high median household income also implies that the majority of residents are financially stable, but the relatively low percentage of renters suggests that the market is not oversupplied; rather, it is competitive and potentially less accessible for lower-income individuals. #### Investor Angle From an investor perspective, the ZIP code 20110 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,080, which is substantially lower than the typical market rent. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the average rental yields and expenses. Given the high price-to-FMR ratio, it is unlikely that many properties will generate positive cash flow at the FMR level unless they are highly efficient in terms of operating costs and management. The investment grade for this ZIP code would likely be rated as moderate to low, primarily due to the limited number of properties that can be rented out at the FMR without incurring losses. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties where the rent is below or at the FMR level. For instance, a two-bedroom property priced at $2,080 or slightly above might attract Section 8 voucher holders. This strategy requires careful selection to ensure profitability, possibly through lower-cost acquisition or renovation. 2. **Consider Multi-Family Units**: Since the FMR for larger units (like three-bedroom and four-bedroom homes) is higher, multi-family units could be more attractive for Section 8 voucher holders. A three-bedroom unit with an FMR of $2,630 or a four-bedroom unit with an FMR of $3,090 might offer better cash flow potential compared to single-family homes. 3. **Evaluate Operating Costs**: Given the high price-to-FMR ratio, it is crucial to evaluate the operating costs of properties. Investors should look for properties with low maintenance costs, energy-efficient systems, and minimal vacancy rates to maximize returns. Additionally, understanding local regulations and requirements for accepting Section 8 vouchers can help in minimizing administrative overhead. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 20110 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented profitably at the FMR levels. While there are some opportunities in multi-family units, the overall financial landscape suggests that the risk of negative cash flow is too high. Investors looking to enter this market should carefully assess their ability to manage properties efficiently and navigate the regulatory environment before proceeding.

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.