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 | $1,650 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $653,396 | 0.29% | F |
| 3BR | $2,430 | $1,000,543 | 0.24% | F |
| 4BR | $2,870 | $1,597,734 | 0.18% | F |
| 5BR | $3,329 | $2,413,094 | 0.14% | F |
U.S. Census Bureau data (2024)
The ZIP code 20117, located in Middleburg, Virginia, presents an interesting landscape for both renters and landlords. The median income in this area stands at $146,120, which places it well above the national average. However, when considering the market rate for rent, which is $1,843 according to the Census ACS, the affordability becomes less straightforward.
To put this into perspective, a household earning the median income would spend approximately 25% of their monthly income on rent at the market rate. This is feasible but leaves little room for other expenses such as utilities, food, and transportation. In contrast, the Fair Market Rent (FMR) set by the government for ZIP 20117 in fiscal year 2024 is $1,280, which is significantly lower than the market rate. A household could allocate around 17% of their monthly income towards rent if they were to receive a voucher at this FMR rate, making it a more affordable option.
The ZIP code has a rental population of 2,790, with 26.6% of residents being renters. Given the substantial difference between the market rate and the FMR, there exists a notable affordability gap for those relying on vouchers. For landlords, this means that while the market rate offers higher potential income, there is a segment of the rental market that cannot afford these rates without assistance.
The competition among landlords is likely to be high for tenants paying market rates, given the financial strain it imposes on even median-income households. Landlords who are willing to accept Section 8 vouchers may find a more stable tenant pool, albeit at a lower rental price point. Accepting vouchers ensures a steady stream of income and reduces vacancy rates, as the demand for affordable housing is evident.
Takeaway: Landlords in ZIP 20117 should consider a balanced strategy. While cash-paying tenants at market rates provide higher revenue, the significant portion of the population that relies on vouchers represents a reliable source of income. Diversifying their tenant mix can help landlords mitigate risks associated with vacancy and ensure a more consistent cash flow.
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.