Section 8 Fair Market Rent (FMR) for ZIP 20124 - 2027

Location: Washington-Arlington-Alexandria, DC | Metro: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

Investment Score for ZIP 20124

Monthly Rent (2BR)

$2,770

Median Price (2BR)

$429,903

1% Rule

0.64%

Annual Yield

7.73%

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	$2,400
1 Bedroom	$2,500
2 Bedrooms	$2,770
3 Bedrooms	$3,530
4 Bedrooms	$4,160
5 Bedrooms	$4,826
6 Bedrooms	$5,405
7 Bedrooms	$5,837
8 Bedrooms	$6,129

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
2BR	$2,770	$429,903	0.64%	D
3BR	$3,530	$677,144	0.52%	F
4BR	$4,160	$1,020,935	0.41%	F
5BR	$4,826	$1,225,292	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

14,375

Median Household Income

$221,060

Housing Units

4,871

Renter Percentage

7.6%

Occupancy Rate

99.1%

Renter Occupied

366

The Clifton area, located in ZIP code 20124, is a vibrant and affluent community in Virginia. Known for its proximity to Washington D.C., it offers a mix of suburban living and easy access to urban amenities. This analysis will provide key insights into the rental market dynamics, median home values, renter demographics, and overall economic health of the area.

The Fair Market Rent (FMR) for a two-bedroom apartment in Clifton for fiscal year 2024 is set at $2,410.
The Zillow Observed Rent Index (ZORI), which reflects the actual market rent, stands at $3,400 for a similar unit, indicating that the local rental market is robust and exceeds federal guidelines.
The median home value in Clifton is $1,021,681, suggesting a high-end residential market with significant investment potential.
Renters make up 7.6% of the housing stock, a figure that underscores the strong preference for homeownership in this affluent zip code.
While the average number of days on the market (DOM) for rentals is not available, the high median income of $221,060 suggests that there is ample demand from financially stable tenants.

In summary, Clifton's rental market, characterized by a strong demand for housing and above-average rents, presents a favorable environment for landlords and small-portfolio investors. The disparity between the ZORI and FMR highlights the potential for earning above federally mandated rates, while the high median home value indicates a prosperous local economy. Despite a relatively low renter share, the presence of high-income residents ensures a steady stream of quality tenants willing to pay premium rents. These factors collectively suggest that investing in rental properties in Clifton can be both lucrative and secure.

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.